What is the typical loan-to-value ratio for LAP?

The typical loan-to-value (LTV) ratio for a loan against property (LAP) ranges from 40-75% of your property's market value. This means financial institutions are willing to offer LAPs for 40-75% of your property's current market price as assessed by their lending institutes.

An LTV ratio towards the higher end (65-75%) indicates you can avail a larger loan amount for your property's worth. This is feasible if you meet the lender's eligibility criteria and have an excellent credit score above 750. An LTV of 40-50% will translate to a comparatively lower LAP amount but also signals a lower risk for loan providers, hence easier approval chances.

Financial institutions determine exact LTV caps based on property type - residential or commercial, property location, plot area, etc. Additionally, existing loans on the property may also impact the permissible LTV ratio. Maintaining an optimal LTV ratio in your LAP application facilitates quicker processing and better pricing. A higher LTV beyond 75% is usually not provided in LAPs unless you pledge very high-value property.