6 Types of Mortgages in India

In India, there are six main types of mortgages. A mortgage is defined as a specific immovable property’s transfer of ownership to secure payment of funds against it, granted as a mortgage loan in the form of credit under Section 58(a) of the Transfer of Property Act, 1882.

6 Types of Mortgages in India

1. Simple Mortgage

The borrower merely lends his or her immovable assets to obtain a loan. In the event of failing to pay, the lender has the right to sell the mortgaged property.

2. Usufructuary Mortgage

The property is transferred to the lender, who can obtain rents or profits from it without exposing the borrower to personal liability.

3. English Mortgage

It imposes personal liability on the borrower and transfers the mortgaged property to the lender on the basis that successful loan repayment would result in recovery.

4. Mortgage by Conditional Sale

When a mortgage defaults on its payment, the mortgage sale becomes effective. However, once they make their repayment, the mortgage becomes void.

5. Mortgage by Title Deed Deposit

The borrower deposits the mortgaged property’s title deed with the lender to obtain a loan.

6. Anomalous Mortgage

An anomalous mortgage does not fit into any of the above categories.

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