Six questions about the property and your income. The result tells you the indicative range and, importantly, whether the property or your income is the binding constraint.
Two limits, and the lower one applies
What the property supports. Lenders fund a percentage of assessed market value — 60% to 70% for self-occupied residential, dropping to 40% to 50% for a plot. This is the loan-to-value or LTV.
What your income supports. The EMI still has to be serviceable alongside your existing commitments, and on a fifteen-year tenure that is often less restrictive than people expect — but not always.
If the property is the limit, a longer tenure will not help; you need a more valuable property or a co-owner’s property added. If income is the limit, a longer tenure or a co-applicant usually solves it.
Valuation is the lender’s, not yours
The number that matters is what the lender’s appointed valuer says, and it is routinely 10% to 20% below what owners expect. Valuers work from documented comparable transactions in the area, which in most Indian markets are recorded at lower values than actual market prices. Plan on the conservative side.
What can reduce the LTV
- Unapproved construction or a deviation from the sanctioned plan.
- A tenanted commercial property, particularly with a long or protected tenancy.
- Location — properties in areas with thin resale markets get funded more cautiously.
- Age and condition of the building.
- Any ambiguity in the title, which more often stops the loan than reduces it.
Whose income is counted?
The applicant's, plus any co-applicant's. If the property is jointly owned, all owners normally have to be on the loan anyway, so their income counts too — which often helps.
Can I use rental income from the property?
Usually yes, though lenders typically count only 70% to 80% of it and want a registered lease deed and bank credits to evidence it.
What if the property is in my father's name?
He joins the loan as a co-applicant or guarantor. It is entirely normal, but it needs to be agreed early — a property loan cannot proceed without every owner on board.