Different Types Of Mortgage Loans Permitted In India

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While going through your loan applications, you must have come across the term ‘mortgage’ multiple times. Mortgage loans are one of India’s most preferred forms of loans applicable to real estate for buying property. Nonetheless, consumers can also borrow mortgage loans for several other financial reasons such as business expansion, buying machinery, or stockpiling inventory. 

What is a mortgage?

Mortgage loan are defined as a type of loan obtained where a property or real estate is pledged as security or collateral to borrow money. The borrower of a mortgage loan requires to hold a piece of property, land including commercial space, or business place as collateral. Approximately 60% of the property’s worth is provided as a loan amount which can be reimbursed through monthly EMI. EMI is calculated by your lending institution based on your loan parameters using a mortgage loan EMI calculator. 

Different types of mortgage loans that are legally permitted in India:

PNB housing finance ltd offers many types of mortgage loans based on people’s needs and requirements. 

        Simple mortgage:

In a simple mortgage loan, the property pledged as security does not get transferred to the lender in case the borrower fails to pay back the mortgage loan. However, the loaner has legal rights to sell the borrower’s property and recover the return for loan compensation. 

        Usufructuary mortgage:

In the case of this mortgage loan, the property’s possession can legally be transferred to the lender of the loan. If the property is profitable, the rents or the profits from the property are received by the mortgagee till the loan is repaid. No personal liability is sustained by the borrower. 

        English mortgage:

In this type of mortgage loan, the borrower is expected to pay back the loan amount by a certain date, mutually agreed by both of the parties engaged. If the borrower fails to do so in any case, the property will be transferred to the mortgagee. However, once the loan amount is fully paid, the property is transferred back to the borrower. 

        Mortgage by conditional sale:

In this mortgage loan, the borrower sells his/her property with terms on the stake that become effective in case he/she is unable to pay back the loan by a mutually agreed date, or the sale of mortgage does not hold value, or the lender transfers the property back to the borrower. 

        Mortgage by title deed deposit

In the mortgage by title deed deposit, the borrower delivers the title deed of the property in the keeping of the lender as security. 

        Anomalous mortgage

An anomalous mortgage is a mortgage that does not come under any of the mortgages within the meaning of section 58, unlike the mortgage loans mentioned above. 

PNB housing offers loans against mortgage of existing residential or commercial immovable properties up to a 20 years loan tenure with a customized eligibility program and numerous repayment options. With personalized doorstep services and a pan India branch network, a dedicated team of well-experienced employees to provide customer satisfaction.

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