Mortgage Loan Interest Rate 2025

A mortgage loan is a credit facility under which you can secure funds by pledging your property. The mortgage loan interest rates range from 9% to 20% p.a. at present. The mortgage loan interest may vary depending on the borrower’s eligibility, loan amount, tenure and lender’s policy. Usually, the amount of loan you can avail is up to 90% of the registered property’s value. The repayment tenure for mortgage loans can be up to 15 years.

Below is the table containing the current Mortgage Loan Interest Rate All Banks:

Compare Banks to get lowest Loan Against Property Interest Rate.

Apart from applicable mortgage rates of interest, there are following three basic charges that are levied by lenders on mortgage loans:

Mortgage Loan Processing Fees

The lender has to bear some administrative costs while processing and sanctioning a loan against property. This is usually a small amount, which varies from one lender to another and typically costs up to 3% of the sanctioned loan amount plus applicable GST. These charges are levied for the processing of loans.

Mortgage Loan Part Prepayment Charges

If you opt to prepay your loan against property in parts, you can do so on payment of a part prepayment penalty levied by the lender. Usually, the part prepayment penalty varies between 0% to 5% of the principal outstanding being paid plus applicable GST. Most lenders allow borrowers to make part prepayment once a year for free of cost. However, the amount to be prepaid should not exceed 25% of the principal amount outstanding at the time of such prepayment. If this threshold limit is crossed, a penalty will be levied by the lender.

Mortgage Loan Foreclosure Charges

You can also opt to prepay your loan in full before the end of its repayment tenure. As per the RBI’s rules, this facility does not involve any prepayment charges if the loan is based on a floating mortgage rate of interest. However, the borrower must not foreclose the loan during the lock-in period. If you opt for full prepayment of the mortgage loan during the lock-in period, lenders may levy a foreclosure charge between 0% to 5% of the principal outstanding being paid plus applicable GST. The lock-in period may vary between 6 to 60 months.

You can also Check Loan Against Property without Income Proof and ITR

You can use the Mortgage loan interest rate calculator or Loan Against Property EMI Calculator available on our portal, to calculate your Loan Against Property EMI. To do the EMI calculation, you will have to open the Loan Against Property EMI Calculator page given under the Financial Tools tab on the homepage.

Once you are on the page, just enter a few basic details such as loan amount, mortgage rates today, and tenure. Along with the EMI, you will also be able to view the complete amortization schedule of your loan showing the breakup of principal and interest repayment throughout the entire duration of the loan.

You can also use HDFC Loan Against Property EMI Calculator to find out how much you will save on interest and how it affects your Loan EMI.

• Compared to personal loans, mortgage interest rates are lower because they are secured by the mortgage of the property. 
• The lowest mortgage loan interest rate results in a lower EMI amount, making loan repayment affordable.
• Currently, Mortgage loan interest rate in India varies between 9% and 20% p.a.
• Lenders offer floating as well as fixed interest rate mortgage loans, depending on the borrower’s requirement.
• The current mortgage rates may vary from one lender to another depending on the borrower’s credit score, income, loan amount requirement, and other factors.

Compare Banks to get lowest SBI Loan Against Property Interest Rate.

There are different types of mortgage loans in India as described below:

• Loan Against Property: Loan Against Property (LAP) can be availed against the mortgage of a self-owned property for personal or business purposes. In this loan, the property acts as collateral to support the finance provided by the lender. The margin or Loan-to-Value (LTV) for LAP usually ranges from 50% - 90% of the value of the property. 
• Home Loan: A home loan is a secured form of loan that can be availed for purchasing or constructing a residential property. Most banks & housing finance companies (HFCs) sanction 75% to 90% of property’s value as home loans. The key benefits of these loans include low processing fees, provisional sanctions, up to 30 years of tenure, and flexible EMIs.
• Reverse Mortgage: Reverse Mortgage Loan enables senior citizens to avail of periodical payments from a lender against the mortgage of their house while remaining the owner and occupying the house. Anyone aged 60 years or above with a spouse aged 58 or above can apply for this loan. Under a reverse mortgage loan, borrowed money + interest + fees each month = rising loan balance. The homeowners/ their heirs eventually have to pay back the loan, usually by selling the home.
• Commercial Purchase Loan: These loans are taken by business owners to purchase commercial properties like shops, commercial complexes, office spaces, etc. The interest rate offered on these loans by lenders are competitive and the funds must be used only for the commercial property purchase. 
• Lease Rental Discounting: Some banks offer loans against future rent receivables, known as Lease Rental Discounting. The property that fetches rent is mortgaged in favour of the lending institution under this loan. Banks usually finance anywhere between 75% to 90% of the future lease/rent receivables as mortgage loan percentage. The tenure of such loans is shorter and usually ends before the expiry of the lease or the rental.
• Second Mortgage Loan: Lenders offer these loans for properties that are already under a loan. If you buy a property on loan, you can avail of an additional loan against the same property for personal purposes. This loan is commonly known as a home loan top-up.