Residential vs Commercial Property Loan in Delhi: Which One Gives Higher Loan Amount?

When applying for a loan against property in delhi, one of the most important decisions borrowers face is whether to pledge a residential property or a commercial property. Both options allow you to unlock funds by mortgaging your property, but the loan amount, interest rates, eligibility, and approval criteria can vary significantly.

Understanding these differences helps you choose the right option and maximize your borrowing potential. This guide explains how lenders evaluate both property types and which one usually gives a higher loan amount.

What is a Loan Against Property?

A loan against property (LAP) is a secured loan where borrowers mortgage their residential or commercial property to obtain funds for personal or business needs. The loan amount depends mainly on:

• Property market value
  
  

• Property type (residential or commercial)
  
  

• Income and repayment capacity
  
  

• Credit score
  
  

• Loan-to-value (LTV) ratio
  
  

Today, many lenders also offer flexible structures like od limit against property and cc limit for home loan in delhi, especially for business owners needing working capital.

Residential Property Loan vs Commercial Property Loan

Residential Property Loan

Residential properties include:

• Flats
  
  

• Builder floors
  
  

• Independent houses
  
  

These properties are considered lower risk because their resale market is stable and demand remains consistent.

Key Features:

• Lower interest rates compared to commercial properties
  
  

• Higher approval chances
  
  

• LTV typically between 60%–75%
  
  

• Suitable for salaried individuals
  
  

However, residential properties may not always generate income directly, which can slightly limit the loan amount.

Commercial Property Loan

Commercial properties include:

• Shops
  
  

• Office spaces
  
  

• Warehouses
  
  

• Showrooms
  
  

Lenders often consider commercial properties higher risk due to market fluctuations, but they can generate rental income, which increases repayment capacity.

Key Features:

• Higher rental yield improves eligibility
  
  

• LTV usually between 50%–65%
  
  

• Slightly higher interest rates
  
  

• Ideal for business owners
  
  

Because commercial assets can produce income, lenders sometimes offer structured options like cc limit for home loan in delhi or working capital OD facilities.

Which Property Type Gives Higher Loan Amount?

The answer depends on multiple factors, but in most cases:

Residential property may provide a higher loan percentage (LTV), while
Commercial property may provide a higher absolute loan amount if rental income is strong.

Scenario Comparison

If your commercial property is in a prime location with stable rental income, lenders may approve a larger loan amount despite a lower LTV ratio.

Role of OD and CC Limits Against Property

Many borrowers today prefer flexible funding instead of a fixed-term loan.

od limit against property

An od limit against property allows borrowers to withdraw funds as needed instead of taking the entire loan at once. Interest is charged only on the utilized amount, making it ideal for business cash flow management.

This structure is commonly approved when:

• Business income is stable
  
  

• Property valuation is strong
  
  

• Credit score is good
  
  

cc limit for home loan in delhi

A cc limit for home loan in delhi works similarly to an overdraft but is structured more for business usage. It is especially useful for:

• Traders
  
  

• SMEs
  
  

• Self-employed professionals
  
  

Commercial properties often receive easier approval for CC structures due to income generation potential.

unsecured od limit for home loan in delhi

Some lenders also provide unsecured od limit for home loan in delhi, but the approved amount is usually smaller because no property collateral is involved. Interest rates are also higher compared to secured LAP structures.

Factors That Affect Loan Amount in Delhi

Whether you choose residential or commercial property, lenders consider these key factors:

1. Property Location

Prime locations increase property valuation and loan eligibility.

2. Income Stability

Higher income improves repayment capacity and loan approval chances.

3. Credit Score

A score above 750 helps secure better interest rates.

4. Property Condition

Legally clear and well-maintained properties get higher valuations.

How to Choose the Right Property for LAP

Choose residential property if:

• You want lower interest rates
  
  

• You are salaried
  
  

• The property has strong resale value
  
  

Choose commercial property if:

• You need a higher loan amount
  
  

• The property generates rental income
  
  

• You need working capital via od limit against property or cc structures
  
  

Why Choose Loanswala for Loan Against Property in Delhi?

Applying for a loan against property in delhi requires expert guidance to get the best valuation and lowest interest rates. Loanswala helps borrowers compare multiple lenders and select the right structure—whether it is a standard LAP, od limit against property, or cc limit for home loan in delhi.

With fast processing, minimal documentation support, and customized solutions for salaried and self-employed applicants, Loanswala makes the entire loan process simple and transparent.

FAQs – Loan Against Property in Delhi

1. Which property gives higher loan amount, residential or commercial?

Commercial properties can give higher loan amounts if they generate stable rental income, while residential properties usually offer higher LTV ratios.

2. What is the maximum loan amount for loan against property in delhi?

Most lenders offer 50%–75% of the property’s market value, depending on eligibility and property type.

3. Can I get od limit against property for business use?

Yes, many lenders provide od limit against property for working capital and business expansion.

4. What is cc limit for home loan in delhi?

It is a flexible credit facility where borrowers can withdraw funds as needed against property collateral.

5. Is unsecured od limit for home loan in delhi available?

Yes, but the approved loan amount is smaller and interest rates are higher because no collateral is provided.

Choosing between residential and commercial property depends on your financial goals, income profile, and funding requirements. With the right guidance from Loanswala, you can secure the best loan structure and maximize your borrowing potential while keeping repayment comfortable.