How Much Can You Borrow Against Your Property?

Your maximum Loan Against Property amount is determined by a combination of the property's assessed value, the applicable LTV band, and your own income-based repayment capacity - not any single factor alone.

Step 1: Property valuation

The lender arranges an independent valuation of your property to establish its current market value - this is the base figure the LTV percentage is applied to, and it may differ from what you believe the property is worth or what you originally paid for it.

Step 2: Applying the LTV band

Per regulatory guidance, LAP LTV is generally capped around 75% for loans up to roughly ₹75 lakh and around 65% for larger amounts - so a property valued at ₹1 crore might support a maximum loan in the range of ₹65-75 lakh, depending on the specific loan amount tier and the individual lender's own policy within that band.

Step 3: Income-based capacity check

Even if the property's value supports a larger loan under LTV rules, the lender will separately assess whether your income can support the resulting EMI, similar to any other loan - the property value alone doesn't guarantee you'll be approved for the maximum LTV-based amount.

Why the actual sanctioned amount can be lower than the LTV maximum

Lenders often sanction below the maximum LTV-permitted amount if your income-based capacity is the binding constraint, or if the property's marketability/location is factored conservatively into their internal risk assessment - the published LTV band is a ceiling, not a guaranteed amount.

A practical way to estimate your range

Get a realistic sense of your property's current market value (a professional valuation, or comparable recent sales in the area) and apply the relevant LTV percentage as a rough ceiling, then separately check your income-based eligibility (similar to how you'd estimate personal loan eligibility) - your actual sanctioned amount will be the lower of the two.