7 Reasons Why You Should Choose Mortgage Loans in India

Introduction

With India’s booming real estate market and growing financial inclusivity, mortgage loans have emerged as a strategic tool for property ownership and wealth creation. Whether you’re a first-time homebuyer, an investor, or someone seeking funds for diverse needs, here’s why mortgage loans in India are a smart financial choice.

1. Lower Interest Rates Compared to Unsecured Loans

Mortgage loans in India typically offer interest rates 2-4% lower than personal or business loans, as they’re secured against property. For example, while personal loans hover around 10-15%, home loans start as low as 8.4% (rates vary by lender). This translates to significant long-term savings.

2. Access to Higher Loan Amounts

With property as collateral, lenders approve up to 60-80% of the property’s market value, enabling you to finance big-ticket goals like buying a home, commercial space, or land. This is especially useful in metros like Mumbai or Bengaluru, where property prices are steep.

Example: A ₹1 crore property could secure a loan of ₹60-80 lakh.

3. Extended Repayment Tenures (Up to 30 Years)

Mortgage loans offer flexible tenures of up to 30 years, reducing your EMI burden. For instance, a ₹50 lakh loan at 8.5% over 20 years has an EMI of ₹43,391, vs. ₹61,715 over 10 years.

Stat Alert: Longer tenures improve cash flow for other investments or emergencies.

4. Tax Benefits Under Indian Income Tax Laws

Enjoy dual tax deductions:

• Section 24(b): Deduct up to ₹2 lakh annually on interest repayment.

• Section 80C: Claim up to ₹1.5 lakh on principal repayment. Bonus: First-time homebuyers may claim additional deductions under Section 80EEA.

Ideal For: Salaried professionals and investors optimizing tax outflows.

5. Versatile Usage Beyond Home Purchase

Mortgage loans aren’t limited to buying property. Use funds for:✅ Renovation ✅ Business expansion ✅ Education ✅ Medical emergencies.

Case Study: A Delhi-based entrepreneur used a mortgage loan to fund her startup, leveraging her ancestral property.

6. Easier Eligibility with Collateral Security

Even with a moderate credit score (650+), collateral reduces lender risk, simplifying approval. This is a boon for self-employed individuals or freelancers with irregular income.

Did You Know? Some lenders offer loans against rented or inherited properties too.

7. Boost Credit Score with Timely Repayments

Consistent EMI payments improve your creditworthiness, easing future loan approvals. Over 60% of Indian borrowers report a 100+ point credit score increase after responsibly servicing mortgage loans.

Conclusion

Mortgage loans in India offer a balanced mix of affordability, flexibility, and strategic benefits, making them ideal for long-term financial planning. However, always assess repayment capacity to avoid risking your collateral. With competitive rates, government incentives (like PMAY), and digital application processes, there’s never been a better time to leverage property for your aspirations.

CTA: Ready to explore options? Use online EMI calculators and consult lenders to tailor a mortgage plan that fits your goals!