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Show formula & working
Property-based limit = Σ Market value × LTV
Income-based limit = (Income × FOIR − Existing EMIs) × (1 − (1 + r)−n) ÷ r
Eligible loan = lower of the two
n = the shortest of the tenure you want, the months until the end age, and 360. LTV and FOIR for loans against property are set by each lender's policy; RBI's home-loan LTV ceilings do not apply.How this works
Lenders cap a loan against property two ways: as a share of the property's market value (LTV), and by how large an EMI your income can carry (FOIR). You get the lower of the two.
LTV for LAP is a lender decision — commonly lower for commercial or self-occupied property than for rented residential property. Self-employed income is usually taken from ITRs, often averaged over two or three years.
Adding a second property raises the property-based limit; it does not help if your income is what limits the loan.
Frequently asked questions
What LTV do lenders give on a loan against property?
It varies by lender, property type and occupancy — often somewhere between 40% and 70% of market value. Enter your lender's figure under Lender assumptions.
Which income counts for the self-employed?
Usually income as per ITR, sometimes averaged over two or three years, plus depreciation and interest added back by some lenders. Bank-statement or GST-based programmes exist too.
Can more than one property be mortgaged?
Yes. Lenders can take more than one property as security. Each is valued and its LTV applied separately.
Is this what the lender will sanction?
No. It is an indicative estimate. The lender's legal and technical checks on the property, your credit history and its own policy decide the final amount.
Raising money against property?
Term loan, overdraft or drop-line — and how much to take — depends on your cash flow. Talk to us.