Mortgage Loan

The loan amount sanctioned from a mortgaged loan can be invested anywhere as per the borrowers’ need. It can be used for fulfilling personal requirements like paying for the child’s higher education, organising a wedding ceremony, buying a plot etc. It can also be invested in business needs like an upgrade in machinery, buying new tools, expanding a current business or even kicking off a start-up business. Since it is a secured loan, the fund is sanctioned based on the mortgaged asset and the borrower’s repayment capability and not based on where the capital is being invested.

There is a need to provide collateral or security for mortgage loans. It is a secured loan and hence is sanctioned only after the individual pledges a valid immovable asset as collateral against the loan amount. The maximum loan amount approved also depends on the net value of the borrower’s asset that he or she pledges as collateral. The mortgage is used as a security against the loan amount so that the lender can cover for his losses in case the borrower fails to repay the loan or does not adhere to the terms specified.

There are six types of mortgage loans available in India as listed below.

• Simple mortgage loan

The immovable asset is simply mortgaged personally by the borrower to avail the loan. The property may be forfeited if the borrower fails to repay, sticking to the terms.

• English mortgage loan

Personal accountability is established on the borrower and the mortgaged property can be recovered from the lender on successful repayment of the loan.

• Conditional sale mortgage loan

The mortgaged property is sold to the lender by the borrower with terms that it will be established if the borrower fails to repay but will turn void on successful repayment of the loan.

• Title deed deposit mortgage loan

The title deed of the property to be mortgaged is handed over to the lender.

• Usufructuary mortgage loan

The property’s ownership is transferred to the lender who can get profits from it without generating any personal accountability on the borrower.

• Anomalous mortgage loan

It is a type that does not fall under any of the above-mentioned categories.

A processing fee is the fee charged by financial institutions while processing your mortgage loan application which consists of fundamental administrative costs, credit checks, property evaluation and such similar costs incurred by the financial institution. At SMFG India Credit, we charge a processing fee of upto 3% of the loan amount. For more details, please visit our Loan Against property interest rates page.

Foreclosing mortgage loan or prepayment of the rest of the loan amount before the tenure ends is a viable option that you can opt for. This option can help you to complete your debt obligations sooner. Please note however, that foreclosure charges are applicable in such cases. To know more about SMFG India Credit's  foreclosure charges, please visit our Loan Charges page.

The mortgage loan amount depends on the value of the property you are willing to pledge as collateral. For residential property, a maximum of 70% of property value can be disbursed as a loan, whereas, for commercial property, up to 60% of property value would be disbursed. At SMFG India Credit, mortgage loans are offered from INR 1.5 lakhs upto INR 5 crores. To get a better estimate, use our free LTV calculator. Please note that the actual LTV percentage will depend on a number of factors including your eligibility and our SMFG India Credit policy at the time of loan application.

No, the chances of hurting your credit score is limited, if you are servicing the loan as per the agreed terms and within the timeline.

For mortgage loan, only residential and commercial property are accepted as collateral by SMFG India Credit. The property should have clean ownership documents and should be clear from any type of legal dispute. In case the property is owned by more than one person, the other owners must be made a co-applicant for the mortgage loan, and their eligibility will also be evaluated. 

Make the most of your property to meet any expenses you have. Reach out to SMFG India Credit’s support team to get customized property loans depending on your requirement.