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Ananya Shrivastava
Ananya Shrivastava is a Content Writer at LoansJagat, specialising in finance-focused news, blogs, and long-form articles on Indian markets, RBI policy, personal finance, and lending. She has authored over 450 blogs and 250 news pieces, combining technical knowledge with rigorous research to simplify complex financial concepts into clear, engaging content. With a marketing-driven lens and sharp editorial judgment, she consistently achieves top Google rankings while ensuring every claim is backed by verified data.
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Most banks sanction between 50% and 75% of your property's market value as a Loan Against Property. This is called the Loan to Value or LTV ratio. On a ₹1 crore property, your loan could range from ₹50 lakh to ₹75 lakh, depending on the bank and property type.
A Loan Against Property, or LAP, lets you borrow money by mortgaging a residential or commercial property you already own. Any property owner in India can apply, salaried or self-employed.
This facility can now be availed from banks/NBFCs situated in cities like Delhi, Mumbai, and Bengaluru. Individuals generally seek this loan when they require funds for expanding their business, for medical purposes, education, or even to repay existing loans. The loan amount depends on your property's market value, your income, and your credit score.
Also Read: Top Reasons to Take a Loan Against Property in India
A Loan Against Property is a secured loan where you pledge your property as collateral to a bank. You continue to use or rent out the property while repaying the loan. The bank holds a legal charge on the property until you close the loan.
Unlike a home loan, which is used to buy a house, LAP funds can be used for almost any personal or business purpose. Banks such as SBI do restrict this loan from speculative or business use under certain schemes. Always check the fine print before applying.
Banks calculate your loan amount using the Loan to Value or LTV ratio applied to your property's market value. This value comes from a bank-approved valuer, not from your own estimate.
The formula is simple:
Loan Amount = Property Market Value × LTV Ratio
The bank then cross-checks this figure against your income and existing debts. Your final sanctioned amount is the lower of the two numbers.
The maximum LTV ratio for Loan Against Property ranges from 60% to 75% across major Indian banks. This ratio usually drops as your loan amount rises. Here is how three leading banks structure their LTV as of August 2026.
SBI sets its minimum loan amount at ₹10 lakh and its maximum at ₹5 crore, subject to the property's location and city category. HDFC Bank and ICICI Bank do not publish a fixed rupee ceiling on their standard websites, since the amount is assessed case by case.
You can get a loan amount of between ₹27.5 lakh and ₹37.5 lakh on a property worth ₹50 lakh. The exact figure depends on which bank you approach and your income profile.
Here is a quick calculation across LTV bands.
A property in a metro city with clear title documents usually gets the higher end of this range. A property in a smaller town, or one with disputed papers, gets a lower LTV.
Rajesh Kulkarni is a 41-year-old architect who has his own business in Pune. His flat is worth ₹70 lakhs. He applied for a Loan Against Property to pay for his daughter’s admission in engineering and to pay off two personal loans.
His bank approved a 60% LTV ratio on his flat, working out to ₹42 lakh. His net annual income fell in the ₹5 lakh to ₹10 lakh band. This placed him in the 55% EMI-to-income band SBI applies to its LAP scheme. He chose a 15-year tenure to keep his EMI manageable. He paid a processing fee close to 1% of his loan amount.
Your final loan amount depends on more than just your property's value. These factors decide the amount a bank actually sanctions.
*T&C Apply
Yes, the LTV in case of Loan Against Property is different from home loan because Loan Against Property comes with low LTV. Home loans in India follow the RBI guidelines about LTV. The guidelines permit LTV till 90% for properties worth ₹30 lakh and above.
However, the Loan Against Property doesn't come with the LTV restriction of the RBI because you borrow against the property that you already own. It is a risky product for banks, and hence, they charge low LTV for LAP products, which lies between 60% and 75%.
Salaried employees, self-employed professionals, self-employed non-professionals, and NRIs can apply. You must own the property, alone or jointly with your spouse, children, parents, or siblings.
A co-applicant changes the math. Add your spouse, parent, or sibling as co-owner and co-applicant, and the bank counts their income too. Your total eligible loan amount goes up. This matters most when your own income alone falls short of what the property's LTV would otherwise allow.
Loan Against Property comes with a processing fee, valuation charges, and the applicable interest rate, apart from the EMI itself.
Yes, you can raise your eligible loan amount by improving a few specific factors before you apply. A higher approved amount usually comes from a cleaner financial profile, not from negotiating with the bank.
A Loan Against Property can give you up to 55% to 75% of the value of your property. However, it depends upon your bank, income, and type of property. Compare LTV ratio, processing fees, and interest rate across at least 3 lenders before applying. This is how you land the best deal on a Loan Against Property.
₹55 lakh to ₹75 lakh as per an LTV of 55% to 75%.
Most banks offer between 60% and 75%, with ICICI Bank going up to 75% on its instant scheme for select customers.
Yes, commercial property usually attracts a lower LTV ratio than residential property at most banks.
Loan amount depends on income and repayment capacity, not employment type alone. A self-employed applicant with high income can qualify for a high amount too.
SBI's minimum loan amount is ₹10 lakh under its standard LAP scheme.
Yes, having a low CIBIL score will result in a lower loan amount, despite the property's value being eligible for a higher loan amount.
It's typically capped at 15 years. Your tenure period depends on your age by the time the loan matures.
No. The property should not be burdened by any loans or mortgages before applying.
Your income proof, bank statements, property valuation report, and credit report together decide your final loan amount.
Most banks offer floating rates linked to the Repo Rate, though some also offer fixed rate options at a higher cost.
