How does the lending bank decide on the amount I can get as loan against property?

For any loan to be sanctioned to a borrower, the lender- bank or non-banking finance company (NBFC), checks his/her repayment capacity. This repayment capacity is one of the most important eligibility criteria when it comes to sanctioning of a mail.

For calculating the loan amount that you can get as a borrower, your income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.

Based on these eligibility criteria, a loan is sanctioned to you. Do note, however, that the eligibility of a loan cannot, generally, exceed 60% of the property’s market value.