How much loan can you get against your property? A detailed guide

Ever thought about the loan amount you can get by keeping your property as collateral or security? If you are owning a valuable piece of real estate—residential, commercial, or even rented—you might qualify for a high-value Loan Against Property (LAP).

Whether you are looking to fund your child’s education, manage business expenses, or consolidate debt, this option offers a financially smart way to unlock your property’s potential.

But how is the mortgage loan amount calculated? What impacts the maximum disbursable loan amount? And how can you estimate your EMI amount? This article will provide answers to all of these questions! 

What is a Loan Against Property (LAP)?
 

An LAP loan is a secured credit option where you pledge your residential, commercial, or rented property as collateral to a bank. The loan proceeds you get is based on the market value of the property, your income, past credit record, and repayment potential.

How is the mortgage loan amount calculated?
 

The loan amount calculation depends on various factors. They are:

• Property value – You get loan proceeds of up to 80% of the current market value of your property.
• Property kind – Commercial properties or those properties yielding rental income might get you a better valuation.
• Income – Your month-on-month earnings affect your repayment potential.
• Credit score – A high score of 750 or above may result in higher credit approval chances.
• Existing liabilities – Fewer loans mean better eligibility for a higher mortgage loan amount.

Use a loan amount estimator before applying
 

You can use a loan amount estimator to get an idea of how much loan you may be eligible for based on your property type, market value, income, and liabilities. The general Loan-to-Value (LTV) ratio is up to 80%. Wondering what this is?

Let’s say your property is worth ₹2 crores, you may get a maximum mortgage loan proceeds equalling ₹1.6 crore (at 80% LTV), subject to your income and credit history.

Features of IDFC FIRST Bank’s loan against property
 

If you are planning to apply for an LAP loan, IDFC FIRST Bank offers competitive features that make your loan journey smoother:

• Loan proceeds of up to ₹15 crores with repayment tenures of up to 25 years
• Funding up to 80% of your property's market value
• Balance transfer option at attractive interest rates
• Top-up loan facility available while transferring the existing LAP
• Loan against rental income (LRD) and loan for commercial property (LCP)/Plot purchase
• Quick and transparent processing

Whether you are self-employed or salaried, these benefits make it easier to get high-value loans against your assets.

Loan against property EMI calculator – Know before you commit
 

Always use a loan against property EMI calculator before taking a loan. IDFC FIRST Bank’s LAP EMI calculator requires three simple inputs:

1. Loan amount
2. Repayment tenure
3. Interest rate

For instance, if you opt for a loan amount of ₹1 crore, with a tenure of 25 years (300 months) at 9% per annum, your EMI would be ₹83,920.

This helps you plan your monthly outgo in advance and ensures you do not overburden your budget.

Who should consider an LAP loan?
 

• Business owners seeking working capital
• Families looking to fund higher education or wedding expenses
• Salaried professionals wanting to consolidate existing loans
• Investors buying commercial property or a plot

Final thoughts – How much can you borrow through a Loan Against Property?
 

The amount you can borrow through a Loan Against Property depends on your property's market value, income, credit score, and the lender's policies. IDFC FIRST Bank offers up to 80% of the property's value as loan proceeds through its LAP offering. You can get up to ₹15 crores with repayment tenures of up to 25 years, and options to transfer your existing loan or avail top-up facilities. You can also borrow against rental income or purchase a commercial property or plot.

To plan wisely, always ensure to use a loan amount estimator or a loan against property EMI calculator.