How to Get High Loan Amount on Property
Getting a high loan amount on property is possible if you plan smartly and understand how banks and NBFCs evaluate your application. The loan amount you get depends on the property’s market value, your income, credit history, and the lender’s policy. If you own a residential or commercial property and want to use it to raise a large sum, improving your eligibility and choosing the right lender can make a big difference. In this article, we will explain simple ways to get a high-value loan against property with easy steps.
What Is a Loan Against Property?
A loan against property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property to a bank or NBFC. In return, the lender gives you a loan, usually up to 60–75% of the property’s current market value. These loans are ideal for business expansion, education, medical needs, or debt consolidation.
Factors That Affect Loan Amount
To get a high loan amount on your property, you need to understand the main factors lenders consider:
1. Property Value
-
The higher the current market value of your property, the more you can borrow.
-
Properties in urban areas or with clear titles usually get higher valuation.
2. Loan-to-Value (LTV) Ratio
-
Lenders offer 60% to 75% of the property’s value as a loan.
-
To get the maximum LTV, your property should be free from legal disputes and in a prime location.
3. Income & Repayment Capacity
-
A stable income from salary, business, or rent helps you qualify for a bigger loan.
-
If your income is low, adding a co-applicant can boost your eligibility.
4. Credit Score
-
A credit score above 750 shows strong creditworthiness and increases your chances of getting a high loan amount.
Tips to Get a Higher Loan Against Property
1. Choose High-Value Property
Pledge a property with high market demand, good location, and clear documents. Commercial properties often have higher valuations than residential ones.
2. Improve Your Credit Score
Before applying, check your credit report and clear outstanding debts. A better score improves both your loan amount and interest rate.
3. Show Additional Income Sources
Provide proof of all income sources like rent, side business, or freelance work. More income shows better repayment capacity.
4. Add a Co-Applicant
A co-applicant with stable income, like a spouse or parent, can help you qualify for a higher loan amount.
5. Select the Right Lender
NBFCs sometimes offer a higher loan amount than traditional banks. Compare multiple lenders to get the best deal.
6. Opt for Long Tenure
A longer repayment period reduces EMI, increasing your eligibility for a bigger loan.
Documents Needed for Higher Loan Amount
To apply for a high-value loan against property, you must submit:
-
Property ownership documents
-
Latest property tax receipt
-
Identity and address proof
-
Income proof (salary slips/ITR/rental agreement)
-
Bank statements (last 6–12 months)
-
Co-applicant documents (if applicable)
Having complete and updated documents speeds up the approval process.
Benefits of High Loan Against Property
-
Larger funds at lower interest rates (8%–12%)
-
Flexible repayment options up to 15–20 years
-
Continued ownership of property during loan tenure
-
Funds can be used for multiple purposes, including business, education, or medical treatment
Conclusion
Getting a high loan amount on property is possible when you present the right documents, maintain a strong credit score, and choose the right lender. Use a well-located, high-value property and enhance your eligibility by including a co-applicant or showing additional income. With the right strategy, you can unlock maximum value from your property while enjoying low-interest, long-term repayment options.