A loan against property is a popular way to borrow money by using your property as security. It is often used for big expenses like business expansion, education, or medical emergencies. But before the loan is approved, the most important step is the valuation of the property. In simple terms, property valuation helps the lender decide how much loan can be given based on the current market value of your property.

What is Property Valuation?

Property valuation means finding out how much your property is worth in the current market. Banks and other lenders use this value to decide the loan amount they can offer. Usually, the lender does not give the full market value as a loan. Instead, they offer around 50% to 70% of the property's value. This is called the Loan-to-Value (LTV) ratio.