A property can be more than a place to live or run a business. If you own an eligible residential, commercial or other acceptable property, it can also help you raise funds through a Loan Against Property (LAP).
A Loan Against Property is a secured loan where the property is mortgaged to the lender as security. Depending on the lender and your eligibility, the funds can be used for needs such as business expansion, working capital, education, medical expenses, debt consolidation and other permitted purposes.
One of the first questions borrowers usually have is: How much loan can I get against my property?
There is no fixed amount for every borrower. The sanctioned loan depends on factors such as the property's value, applicable loan-to-value ratio, income, existing financial obligations, credit profile, property type, location and the lender's assessment.
However, several banks in India offer high loan limits through their Loan Against Property and mortgage-related products. Here are 7 banks to consider when comparing higher loan amounts.
1. Federal Bank
Federal Bank offers Loan Against Property facility with a loan amount of up to ₹20 crore, subject to applicable terms and conditions. The facility is available against eligible residential premises, plots of land and commercial properties.
Borrowers can avail the facility as a Term Loan or Overdraft, depending on the applicable product structure. The maximum repayment tenure is up to 15 years.
This makes Federal Bank an option for borrowers looking to raise a substantial amount against eligible property while choosing between different loan structures.
2. Axis Bank
Axis Bank offers Loan Against Property starting from ₹5 lakh and up to ₹5 crore under its published LAP and overdraft facility information.
The bank's LAP offering covers residential and commercial properties, while its overdraft-against-property facility also has a maximum limit of ₹5 crore.
The final amount available to a borrower depends on the property, income, repayment capacity and other eligibility conditions.
3. State Bank of India
State Bank of India (SBI) offers multiple secured lending products against property, with the applicable loan amount depending on the specific product and borrower category.
Under its Asset Backed Loan (ABL) structure, SBI provides loans of above ₹5 crore and up to ₹20 crore, subject to applicable terms and conditions. The bank also offers other asset-backed products with different loan limits.
For this reason, borrowers searching for an SBI Loan Against Property should first identify the specific facility they need. The maximum amount, margin and eligibility requirements can vary between products.
4. Kotak Mahindra Bank
Kotak Mahindra Bank offers Loan Against Property for both personal and business requirements. Its published LAP information states a loan range of ₹10 lakh to ₹5 crore.
The bank also accepts eligible commercial, residential and industrial property under its LAP offering and provides EMI-based as well as overdraft options.
The actual loan amount depends on the applicant's eligibility and the property's value and characteristics.
5. Bank of Maharashtra
Bank of Maharashtra offers Loan Against Property facilities for individuals as well as business-related requirements through applicable schemes.
Under its Loan Against Property for Individuals scheme, the maximum loan amount is up to ₹10 crore for properties located in metropolitan centres, while the maximum is up to ₹5 crore for properties in other centres, subject to applicable conditions.
The actual amount sanctioned depends on factors such as the property's value, repayment capacity and applicable margin requirements. This means the location of the property can affect the maximum available loan amount.
6. HDFC Bank
HDFC Bank offers Loan Against Property against residential and commercial properties, with its standard LAP page showing a loan calculator extending up to ₹10 crore and a maximum tenure of up to 15 years.
For MSMEs, HDFC Bank separately offers an Overdraft Against Property of up to ₹10 crore against residential, commercial or industrial property. The facility allows eligible businesses to draw funds from an approved limit as required.
This distinction is useful for business owners comparing a conventional LAP with an overdraft facility.
7. Bank of Baroda
Bank of Baroda provides mortgage-based financing through its Baroda Mortgage Loan and other property-backed facilities.
For its individual mortgage offering, the bank provides a loan amount of up to ₹10 crore, subject to applicable eligibility criteria and terms.
The bank also offers different mortgage structures, including facilities linked to future rent receivables, where the applicable loan amount can differ. Therefore, borrowers should compare the specific mortgage product rather than relying only on a general maximum loan figure.
How Much Loan Can You Actually Get Against Your Property?
The maximum amount advertised by a bank should not be confused with the amount you will actually receive.
For example, a property valued at ₹2 crore does not automatically qualify for a ₹2 crore loan. The lender may finance only a percentage of the property's assessed value based on its applicable LTV or margin requirements.
The bank can also consider:
- Market and assessed value of the property
- Type and location of the property
- Income and repayment capacity
- Existing loans and financial obligations
- Credit history and profile
- Age and employment or business profile
- Property ownership and documentation
- Applicable LTV or margin requirements
- Purpose of the loan
Property documentation is equally important. The lender may conduct legal and technical verification before deciding the eligible loan amount.
Should You Choose a Bank Based Only on the Maximum Loan Amount?
Not necessarily.
A high maximum loan limit is useful only if it matches your actual funding requirement and eligibility. A borrower should also compare the interest rate, LTV, processing fee, repayment tenure, prepayment or foreclosure terms, eligible property types and other applicable charges.
The structure of the facility matters as well. Some borrowers may prefer a conventional Term Loan, while others may need an Overdraft facility that allows them to access funds as required.
Most importantly, a Loan Against Property is a secured borrowing facility. Your property is offered as collateral, so repayment should be planned carefully. If the borrower fails to meet the loan obligations, the lender may take action against the secured property in accordance with the loan agreement and applicable law.
Final Thoughts
Banks in India offer different Loan Against Property limits, ranging from a few crore rupees to substantially higher amounts under specific products or borrower categories. Federal Bank, for example, currently states that its Property Power facility provides loans of up to ₹20 crore, subject to applicable conditions.
Instead of focusing only on the largest possible loan amount, compare the complete loan structure and choose an amount that fits your financial requirement and repayment capacity.
