Things To Know Before Availing a Mortgage Loan In India

Out of the various mortgage loans, two types are the most famous – loan against property and home loan.  A loan against property allows you to mortgage your existing residential or commercial property to get money. A home loan, on the other hand, provides you with the money needed to purchase or construct a house.  

Mortgage loans are quite popular in India. You can get a mortgage loan quickly, and the terms are attractive. Generally, lenders offering mortgage loans in India disclose all loan terms before approving the loan. But, as a borrower, you are well within your rights to ask a few questions that will increase your satisfaction level with the loan.

This article contains a list of questions you may ask yourself and your lender before availing a mortgage loan in India. It also gives you an idea about the answers you may expect. Knowing the answers in advance can help you to filter out the right lender from a diverse list of lenders.

Question 1 – How Can I Get the Lowest Mortgage Loan Interest Rate?

Generally, the lowest mortgage loan interest rate depends on the type of loan you select, your credit history, and income status. If you have a decent credit score of 750 and your monthly income is sufficient to ensure uninterrupted EMI payments, the lender will offer you the lowest mortgage loan interest rate.

Question 2 – How Many Years Can I Get to Repay the Loan?

Similar to interest rates, the loan term depends on the type of mortgage loan in India you select. The maximum loan term you may expect from a mortgage loan is thirty (30) years. If you choose an extended term, the interest rate might be higher than the lowest mortgage loan interest rate. Hence, before selecting the EMI amount, try to use an eligibility calculator and find out the real cost of the loan.

Question 3 – How Can I Calculate the EMI?

You can apply for a mortgage loan in India in two ways. You may either visit a branch office of the lender or apply online. If you visit a branch, the lender will manually calculate the EMI and inform you. However, a more straightforward way is to visit the lender’s website and enter details such as the loan amount, loan term, and rate of interest, and the calculator will give you an accurate estimate.

An advantage of using an online calculator is that you can change the loan details as many times as you wish to until you figure out the amount which suits your needs and satisfies your pocket.

Question 4 – How Can I Avail a Mortgage Loan in India?

You may choose two ways of availing a mortgage loan in India. If you choose the brick-and-mortar mode, you need to submit the documents manually. The loan officer will verify the original documents and inform you of the loan amount. Generally, the lender will send you an approval letter soon after the loan gets approved.

Alternatively, you may apply for the loan online, upload scanned copies of original documents, and place the request. Lenders like PNB Housing offer doorstep services, in which the loan officer visits your registered address to verify the documents and approve the loan amount.


An informed borrower prefers asking as many questions as they like before availing a mortgage loan in India. As a fact, it is better to ask questions before applying for the loan than to regret it later. 

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