Loan Against Property depends heavily on collateral quality.
Not every property gets same loan value.
Understanding acceptable property types helps avoid rejection.
Residential self-occupied property
This is the safest category for banks.
Approval chances stay highest here.
Flats in good societies, independent houses in prime areas, and well-maintained buildings usually get strong valuation.
Rented residential property
Banks like rental income.
It adds extra repayment support.
Properties with registered rent agreement often get better loan eligibility.
Commercial shops in prime markets
Banks approve shops in busy areas with good resale demand.
Ground floor shops perform best.
Offices in business districts get approval too if building quality is good.
Mixed use buildings
Many small business owners use ground floor for shop and upper floor for residence.
Banks accept these properties if title clear and construction approved.
Properties banks hesitate on
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Very old construction
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Narrow approach road
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Agricultural land
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Village location far from city
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Disputed inheritance property
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Unauthorized floors
Such cases reduce loan amount or stop approval.
How to increase property value for loan
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Keep tax receipts updated
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Maintain clear title chain
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Remove legal disputes early
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Complete building plan approvals
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Repair visible structural damage
Final thought
Loan amount depends on both profile and property.
Strong property can compensate for moderate income in many cases.
