How does a bank determine the loan amount for a property when the documented value differs from its actual value?

Question

Accepted Answer

Banks assess property value and loan amount through various methods, balancing documentation and market value.

Banks conduct property appraisals to determine market value, which may differ from documented value.
Loan-to-Value (LTV) ratio is calculated; typically, banks lend a percentage of the appraised value.
For example, if a property appraised at ₹50 lakh, and the bank's LTV is 80%, the loan amount could be ₹40 lakh.
Banks also consider the borrower's creditworthiness and income stability when deciding loan amounts.
Market trends and comparable property sales in the area can influence the bank's assessment.

Accepted Answer

bank alwys proprty ki cicle rate ko dekh kr uska 70% to 95% tak dete hai or according to your profile like your ITR if you are pay or your business jko dekhker apka loan decide krte hai

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How does a bank determine the loan amount for a property when the documented value differs from its actual value?

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