Banks typically offer 50–70% of the property's current market value as LAP (Loan-to-Value ratio). Understanding how lenders value your property can help you negotiate a higher sanction.
How Banks Value Property
Lenders use their own approved valuers — not market rates or registrar values. The valuer checks: location, construction quality, age of building, legal title, and comparable sales data.
Factors That Increase LTV
- Clear title with no disputes
- Commercial properties in Tier-1 cities
- Higher CIBIL score (750+) — some banks offer up to 75% LTV
- High income relative to EMI (FOIR under 40%)
Common Valuation Traps
Bank valuers often undervalue by 10–15% for safety margin. Get an independent valuation first so you know what to expect. If the bank valuation is too low, you can request a re-valuation or try a different lender.
Joint Application Tip
Adding a co-applicant with high income can increase the eligible loan amount even if LTV stays the same.