Use our interactive mortgage calculator below to estimate your Equated Monthly Installment (EMI), total interest payable, and amortization schedule.
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Understanding Mortgage Loans
A mortgage loan, commonly known as a home loan in India, is a secured loan where the borrower pledges real estate property as collateral to obtain funds from a lender.
Key Features:
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Loan Amount: Up to 60-70% of the property’s value.
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Tenure: Typically ranges from 5 to 15 years.
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Interest Rates: Offered as fixed or floating rates.
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Repayment: Monthly EMIs comprising principal and interest.
What Is The Difference Between Home Loan and Mortgages?
Many people get confused between home loan and mortgages they think it is one or the same thing. Mortgages is also called Loan against property (LAP). However, you need to understand home loan is taken vastly to buy house, plot, under construction property, etc.
Whereas, mortgage or loan against property is termed as a secured loan that helps borrowers to meet their personal and business requirements by mortgaging their property.
Loan against property or mortgage loan can be used for various purposes, such as expansion of business, marriage in family, funds for medical treatment, leisure vacations and higher studies for children, etc.
The loan is provided as a percentage of the asset’s market value, that usually ranges from 40 per cent to 60 per cent.
Another important thing to know, interest rate for a home loan is lesser than a mortgage loan, a home loan is more affordable than mortgage.
Home loan, on the other hand, is the debt that you incur when you are about to buy a house. The house stands as a security against which you avail of the home loan. The lender creates a lien on the house till the time you clear the debt.
Home Loan vs Mortgage Loan: Chart Comparison
Feature |
Home Loan |
Mortgage Loan (Loan Against Property) |
|---|---|---|
Purpose |
To purchase, construct, or renovate a home |
To raise funds by pledging residential/commercial property |
Loan Type |
Purpose-specific loan |
Multi-purpose loan |
Collateral |
Property to be purchased or built |
Existing owned property (residential/commercial) |
Ownership of Property |
Property is not fully owned until repayment |
Property is already owned by the borrower |
Interest Rate |
Generally lower (starting ~8% p.a. in 2025) |
Slightly higher (starting ~9% p.a. in 2025) |
Loan-to-Value (LTV) |
Up to 90% of property value |
Typically up to 60–70% of property’s current market value |
Tenure |
Up to 30 years |
Up to 15 years |
Tax Benefits |
Eligible under Sections 80C and 24(b) |
Limited or no tax benefits |
Disbursement Time |
May take longer due to builder verification |
Often quicker if property documents are clear |
Usage Flexibility |
Strictly for home-related purposes |
Can be used for business, education, medical, etc. |
Risk |
Lower (property under construction) |
Higher (existing asset at risk of repossession) |
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Home Loan is ideal if you’re buying or building a new house.
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Mortgage Loan (a.k.a. Loan Against Property or LAP) is useful if you already own a property and need funds for other purposes like business expansion, medical treatment, or education.
Latest Mortgage Loan Interest Rates in India In 2025
Following the Reserve Bank of India’s (RBI) recent repo rate cuts totaling 100 basis points, many banks and NBFCs have adjusted their home loan interest rates.
Top Banks:
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State Bank of India (SBI): 8.00% p.a. onwards
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HDFC Bank: 8.45% p.a. onwards
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ICICI Bank: 8.50% p.a. onwards
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Punjab National Bank (PNB): 8.00% p.a. onwards
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Bank of Baroda: 8.00% p.a. onwards
Leading NBFCs:
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Bajaj Housing Finance: 7.99% p.a. onwards
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LIC Housing Finance: 8.00% p.a. onwards
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Tata Capital: 8.75% p.a. onwards
Note: Interest rates are subject to change based on the lender’s policies and the applicant’s credit profile.
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How to Improve Your CIBIL Score for Loans
A strong CIBIL score (ideally 750+) is crucial for getting a home loan approved with favorable interest rates. Here are effective ways to boost your credit score:
1. Pay Your Credit Dues On Time
Always pay your credit card bills and EMIs before the due date. Timely repayment builds a strong credit history.
2. Maintain a Healthy Credit Utilization Ratio
Try to use less than 30% of your total credit limit. Overusing credit limits can hurt your score.
3. Avoid Multiple Loan Applications at Once
Each loan inquiry results in a “hard pull” on your credit report. Too many can lower your score and signal desperation.
4. Keep Old Credit Accounts Active
Long-standing credit accounts with good history improve your average credit age—beneficial for your score.
5. Check for Errors in Your Credit Report
Visit https://www.cibil.com/ and get a free report. Dispute any inaccuracies immediately.
💡 Pro Tip: A higher CIBIL score (750+) not only boosts your loan approval chances but may also qualify you for lower interest rates and higher loan amounts.
What Is Mortgage Insurance?
Mortgage Insurance guarantees repayment of a mortgage loan in the unfortunate event of the policy holder’s accidental death or disability.
Generally, the tenure of payment of such mortgage insurance is 12 months (it may be higher). Moreover, the lender can protect his/ her loaned capital through the special type of insurance instrument.
There are two types of mortgage insurance:
Private Mortgage Insurance(PMI) and Mortgage Insurance Premium(MIP)
Private Mortgage Insurance(PMI) is offered by private insurance companies, it protect the borrower from the lender in case there is a default. PMI cover a large portion of the capital borrowed.
Mortgage Insurance Premium(MIP) is a government insurance products that protects the lender in case the borrower does not pay the amount because of some unfortunate event.
Why Mortgage Insurance Is Required?
With mortgage insurance theirs is a safety for the lenders as well as borrowers moreover you can get the loan with less than 20% of down payment of total loan.
List of Private and Government Mortgage Insurance Companies:
- LIC Housing Finance
- UCO Bank
- Allahabad Bank
- United Bank of India
Private Banks:
- Citi Bank
- HDFC
- Kotak Mahindra Bank
- HSBC
- ICICI Home Finance
- IndusInd Bank
Frequently Asked Questions (FAQs)
Q1: What is the difference between fixed and floating interest rates?
A: Fixed rates remain constant throughout the loan tenure, while floating rates can fluctuate based on market conditions and RBI policies.
Q2: Can I prepay my mortgage loan?
A: Yes, most lenders allow prepayment. However, some may charge a prepayment penalty, especially for fixed-rate loans.
Q3: What factors affect my eligibility for a mortgage loan?
A: Key factors include your credit score, income, employment stability, existing debts, and the value of the property.
Q4: Are there tax benefits on mortgage loans?
A: Yes, under Section 80C and Section 24(b) of the Income Tax Act, you can claim deductions on principal and interest repayments, respectively.
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Conclusion
Securing a mortgage loan is a significant financial decision. With the current favorable interest rates and our user-friendly mortgage calculator, you can make informed choices tailored to your financial goals.
Always compare offers from multiple lenders and consult with financial advisors to select the best mortgage plan for your needs.
If you ask me personally, I would advise anyone, any-day not to go for any loan until it is very critical for you.
Instead, save money or invest in other financial assets (like ETF, fixed deposits, SIP, mutual funds, stocks, indexes as long as you can.
Buy anything when you have that amount in your hand instead of taking any loan.
Reason being the interest rates you pay is huge, longer the tenure, if you have invested the same capital in any other financial assets, that you pay for EMI’s every month at the end of the loan period your money would be the same that you have paid interest to the bank.
Let me explain this through an example suppose you want to buy a home and you require ₹10,000,00,for the same, you estimated that you can pay this loan within 5 years (60 months), let say the bank is giving you the loan at 9%(excluding any other charges like processing fee etc.).
Using the above mortgage calculator your monthly EMI will be ₹20,758, which means at the end of the loan the total payable amount would be ₹12,45,500, this simply means you paid an interest of ₹2,45,500.
Now, if you have invested the same money in equity or and other index funds for 5 years, or through monthly SIP possibility of the return of 9% is very nominal in stock market.
In case you want to know how much you need to save every month to reach your financial goals check out Moneycontain Monthly SIP Calculator with inflation here.
Having said that there is no guarantee as such, I just wanted to present you the another point of view, its your hard earned money, so do proper research before taking any decision.
If you’re looking for a broker that offers speed, transparency, and advanced tools, Dhan is one of the best choices today. With zero brokerage on delivery trades and intuitive charts, Dhan is built for both beginners and pro traders. Invest in Stocks, F&O, Commodities, Currency, ETFs, Mutual Funds, SGBs, IPOs, SIPs and much more.
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No paperwork. No account opening charges. Get started in 5 minutes! Dhan also offers advanced tools like TradingView & Options Trader built-in.
Disclaimer
The information provided on this page, including the mortgage calculator, interest rates, and loan comparisons, is for general informational purposes only. While we strive to ensure accuracy and relevance (as of June 2025), financial data such as interest rates, loan terms, and eligibility criteria are subject to change at the discretion of banks, NBFCs, and regulatory bodies.
The calculator results are estimates and should not be considered financial advice or a guarantee of loan approval. Please consult with your financial advisor, bank representative, or certified loan consultant before making any mortgage-related decisions.
We do not endorse any specific lender and are not responsible for any decisions made based on the content provided herein.
