Collateral Evaluation
The bank doesn’t care what a house is worth to you; they care what it’s worth at a Distress Auction.
- Lower of Two: Banks lend based on the lower of the Market Price or the Technical Estimate.
- The LTV Myth: RBI forbids 100% funding; you must provide “Skin in the Game” (10% to 25% margin).
- Haircuts: Why banks value residential flats close to market price but “shave” the value of land or commercial plots.
Watch this video to avoid being short of cash on registration day.