TL;DR
- A low valuation caps your loan at the LTV percentage of the valuer figure, not the agreed price.
- The RBI does not give you a right to a revaluation. Whether it happens is bank policy.
- Ask in writing, point to specific errors, and attach recent comparable sales.
- You usually pay the revaluation fee, typically Rs 2,000 to Rs 5,000. Get the amount in writing first.
- Rohan in Pune gained Rs 4,80,000 of loan from a revaluation, and still fell Rs 1,60,000 short.
Take one borrower through this whole guide, so every number stays comparable. Rohan is a borrower in Pune. He agrees to buy a 2BHK flat for Rs 80,00,000. The bank valuer values the flat at Rs 72,00,000. His loan sits in the band above Rs 30 lakh and up to Rs 75 lakh, so the maximum LTV is 80 percent. On the agreed price, the loan would be Rs 64,00,000. On the valuation, the loan is Rs 57,60,000. The gap is Rs 6,40,000, and Rohan must fund it himself or negotiate it off the price. Every table and every workbook sheet below uses this same borrower, the same flat, and the same figures.
One reading rule. This page is general information on Indian banking rules as of November 2026, not legal, tax, or loan advice. Where a rule comes from an RBI direction, this page names the direction and quotes its wording. Where a cutoff or a timeline comes from lender policy, this page says so, because policies vary by lender. Only your loan agreement and Key Facts Statement bind your lender. Our sanction letter guide teaches how to read those documents clause by clause.
What does a low valuation do to your home loan?
A low valuation cuts your loan directly, because the bank lends a percentage of the valuer figure, not of the price you agreed with the seller. The percentage is the loan to value ratio, and the RBI caps it by loan size. The table below is the cap for individual housing loans from banks.
| Loan amount | Maximum LTV |
|---|---|
| Up to Rs 30 lakh | 90 percent |
| Above Rs 30 lakh up to Rs 75 lakh | 80 percent |
| Above Rs 75 lakh | 75 percent |
The caps come from the RBI circular of 7 June 2017, consolidated into the RBI Master Circular on Housing Finance, RBI/2025-26/16, dated 1 April 2025. They are ceilings, not promises. A bank may lend less than the cap, for example if your income does not support the EMI. Stamp duty, registration and other documentation charges do not count in the cost of the house when the bank works out LTV, except where the cost of the house does not exceed Rs 10 lakh. That rule sits in paragraph 3 of the same Master Circular.
Work it on Rohan. At 80 percent, the loan on the agreed price of Rs 80,00,000 would be Rs 64,00,000. At 80 percent, the loan on the valuation of Rs 72,00,000 is Rs 57,60,000. The shortfall is Rs 6,40,000. That money has to come from somewhere: your savings, a price cut from the seller, or a smaller loan that still covers the deal. A low valuation also changes the EMI math, because a smaller loan means a smaller EMI, and a revaluation that lifts the loan lifts the EMI too. The worked example near the end of this guide runs every figure.
Does the RBI give you a right to a revaluation?
No. The RBI does not give a borrower a right to a revaluation, and the Master Circular on Housing Finance contains no revaluation procedure, no revaluation timeline, and no rule on who pays for a second valuation. The only RBI rule that governs how banks value property sits in paragraph 2(C)(i)(b) of the Master Circular: Banks should have a Board approved policy in place for valuation of properties including collaterals accepted for their exposures and that valuation should be done by professionally qualified independent valuers. Note the word should. The RBI requires a policy and independent valuers. It does not say the borrower can demand a second opinion.
Whether a revaluation happens is bank policy, so the first question to ask your bank is whether its policy allows one at all. A large lender guide on this question says you can request a re-valuation with a second empanelled valuer or provide recent comparable sales data to the valuer review, and adds that not all lenders permit disputes. That matches the position in the circular: the door is open where the bank policy opens it, and shut where it does not. If your bank refuses, the refusal itself is a policy decision, and the escalation path at the end of this guide is the way to test it.
This distinction matters because it sets your strategy. You are not enforcing an RBI right. You are asking the bank to apply its own policy, and you are giving it reasons to do so: specific errors in the report, backed by documents. A letter that says the valuation feels low will not move a credit manager. A letter that says the valuer used the wrong carpet area and attaches three registered sale deeds will.
Who values your property, and can you pick your own valuer?
The bank appoints the valuer from its own panel, and you generally cannot choose your own valuer for a bank loan. That is standard practice across Indian lenders: the bank commissions the report, the bank pays the valuer or recovers the fee from you, and the bank relies on the report for its lending decision. A report you commission yourself from a valuer outside the panel does not bind the bank, though it can serve as supporting evidence in your request.
One common claim needs correction. Many pages say a home loan valuer must be registered with the Insolvency and Bankruptcy Board of India. That is not the rule for a bank home loan. The Companies (Registered Valuers and Valuation) Rules, 2017 cover valuations required under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, and the IBBI states that those Rules do not affect valuations under any other law or guideline. A bank home loan valuation is governed by the bank board approved policy under the RBI Master Circular. IBBI registration is a credential that signals training, not the governing regime for your valuation.
What you can check is simpler. Ask for a copy of the valuation report, and check the valuer name, the empanelment reference, and the registration number printed on the report. Check the date of inspection, the area figure used, the comparable sales listed, and the deductions applied. Our loan against property appraisal guide explains how valuers work and what an appraisal report contains, and the same reading discipline applies to a home loan valuation.
How do you ask the bank for a revaluation?
Ask in writing, before disbursement, and keep a copy of everything. A verbal request at the branch leaves no record, and a revaluation dispute is a paper dispute. The steps below are the order that works.
First, get a copy of the valuation report in writing. Ask the branch or the credit manager for the full report, not a one line summary of the value. Second, read it line by line: the area used, the comparable sales, the age and condition noted, the deductions, and the final figure. Third, list each error you find, with the document that proves it. Fourth, write to the branch and the credit manager with the error list and the evidence attached, and ask for a review by the same valuer or a second valuer from the panel. Fifth, ask in the same letter who pays for the second valuation, how long the bank will take to decide, and whether the second value will replace the first. Get those answers in writing before you agree to pay.
Timing matters twice. Ask before disbursement, because once the loan is disbursed on the first valuation, the bank has little reason to reopen it. And watch the clock on the report itself: a valuation is typically valid for 3 to 6 months, so a slow revaluation can run past validity and force a fresh valuation at your cost. If the sanction is delayed for another reason, check whether the report is still valid before you spend money on a second one. Our home loan disbursement stages guide shows where valuation sits in the run up to disbursement, so you can see how little time the window gives you.
What evidence actually moves a valuation?
Evidence moves a valuation when it corrects a fact in the report or adds a comparable the valuer missed. Opinion does not move it. The table below lists the evidence that counts, and why.
| Evidence | What to attach | Why it moves the value |
|---|---|---|
| Recent comparable sales | Registered sale deeds for similar flats in the same building or area, from the last 3 to 6 months | Valuers price by comparables, so a missed sale is the strongest correction |
| Correct carpet area | Agreement for sale with the RERA carpet area, and the sanctioned plan | A valuer who priced super built-up area as carpet area undervalued the rate per square foot |
| Sanctioned plan and OC | Sanctioned plan, completion certificate, occupancy certificate | Missing papers invite a discount, and producing them removes the reason for it |
| Renovations | Bills and photographs for work the valuer did not record | Unrecorded improvements are value the report left out |
| Factual errors | Proof of the correct floor, age, facing, parking slot, or amenity | A wrong fact is the easiest error for a valuer to accept and correct |
Three things do not move a valuation. The agreed price alone does not, because the valuer prices the market, not your negotiation. A broker quote does not, because it is an asking price, not a completed sale. And a valuation from a valuer outside the bank panel does not bind the bank, though it can support your request if it uses registered comparables. Lead with registered sale deeds and the correct area figure. Those two items decide most revaluation requests, because they are the two inputs a valuer can verify without leaving the desk.
One more point on comparables. The valuer will weigh sales in the same building or the same locality, of a similar size and age, completed recently. A sale from two years ago, a flat twice the size, or a project in another part of the city will not help, and it weakens your letter by showing you do not know what counts. Three strong comparables beat ten weak ones. Our credit appraisal guide walks through the whole appraisal in order, so you can see where the valuation sits and what the credit officer reads next.
Who pays for the revaluation, and how much does it cost?
You usually pay. The first valuation fee is normally recovered from the borrower, and a second valuation is usually charged again. The fee is typically Rs 2,000 to Rs 5,000 for a home loan valuation, though the amount varies by lender and by city. One published lender card puts the fee at 0.02 percent of the property value, with a minimum of Rs 3,000 and a maximum of Rs 10,000, excluding GST, but that card is dated 2019, so treat it as an example of how lenders price the fee, not as a current price. Ask your bank for its own figure in writing.
The fee must appear in your Key Facts Statement. The RBI Master Circular requires banks to comply with the Key Facts Statement directions, and the statement must show every fee on the loan. Check the statement before you agree to a revaluation, and check whether the fee is refundable if the value does not change. A revaluation that leaves the value unchanged still costs you the fee, so the question to answer before you pay is whether your evidence is strong enough to move the figure. Our penal charges guide explains the same read-the-statement discipline for every other charge on the loan.
There is one case where the fee argument runs the other way. If the first report contains a clear factual error, such as the wrong carpet area or the wrong flat, ask the bank to correct it without charging for a fresh valuation. A correction of a report the bank itself commissioned is not a new valuation. Whether the bank agrees is still its policy, but the request costs nothing to make, and it frames the dispute as the bank fixing its own record.
What happens if the second valuation is still low?
A second valuation can confirm the first, land between the first value and the agreed price, or come in lower than the first. All three outcomes happen, because the second valuer works independently. Ask in writing before you agree whether the bank will use the second value, keep the first value, or take the lower of the two. That answer changes what you risk, and a bank that takes the lower of two values makes a revaluation a one way bet against you.
If the second value is still low, four options remain. First, accept the lower loan and fund the gap from your savings. Second, take the report back to the seller and renegotiate the price, because a bank valuation below the agreed price is a real bargaining fact. Third, switch lender, because a new lender appoints a new panel valuer and produces a fresh valuation, though you pay fresh fees and start the file again. Our home loan balance transfer guide explains how a switch works and what it costs. Fourth, walk away, if the agreement allows it, and check what the agreement says about the advance you paid before you do.
A low valuation can also end the file. If the value is too low for the loan you need, the bank may decline the application, and a valuation led rejection is one of the common reasons home loans fail. Our home loan rejection guide lists the other reasons and what to fix before you reapply, so a failed file does not become a second failed file.
How does a revaluation change your loan, EMI and down payment?
A revaluation changes the loan by the LTV percentage of the change in value. Work it on Rohan, at 8.5 percent a year over 20 years. The table below carries every figure, and the workbook at the end of this guide recomputes them by formula.
| Figure | Amount | How it is worked |
|---|---|---|
| Agreed price | Rs 80,00,000 | Price in the agreement for sale |
| First valuation | Rs 72,00,000 | First bank valuer figure |
| Revalued valuation | Rs 78,00,000 | Second panel valuer figure |
| Maximum LTV | 80 percent | Loan band above Rs 30 lakh up to Rs 75 lakh |
| Loan wanted | Rs 64,00,000 | 80 percent of Rs 80,00,000 |
| Loan on first valuation | Rs 57,60,000 | 80 percent of Rs 72,00,000 |
| Shortfall on first valuation | Rs 6,40,000 | Rs 64,00,000 minus Rs 57,60,000 |
| Loan after revaluation | Rs 62,40,000 | 80 percent of Rs 78,00,000 |
| Gain from revaluation | Rs 4,80,000 | Rs 62,40,000 minus Rs 57,60,000 |
| Still short of loan wanted | Rs 1,60,000 | Rs 64,00,000 minus Rs 62,40,000 |
| EMI on first valuation loan | Rs 49,987 a month | Rs 57,60,000 at 8.5 percent over 20 years |
| EMI after revaluation | Rs 54,152 a month | Rs 62,40,000 at 8.5 percent over 20 years |
| EMI increase | Rs 4,165 a month | Rs 54,152 minus Rs 49,987 |
The revaluation gained Rohan Rs 4,80,000 of loan, and it still left him Rs 1,60,000 short of the loan he wanted. That is the honest shape of most revaluations: a partial recovery, not a full one. The EMI on the first loan is Rs 49,987 a month, and the EMI on the revalued loan is Rs 54,152 a month, so the extra loan costs about Rs 4,165 more a month. Over 20 years, the first loan costs Rs 62,36,788 in interest on total payments of Rs 1,19,96,788, and the revalued loan costs Rs 67,56,521 in interest on total payments of Rs 1,29,96,521. The extra Rs 4,80,000 of loan costs about Rs 5.2 lakh more interest over the full tenure, which is Rs 5,19,733. If the loan he wanted, Rs 64,00,000, had been sanctioned, the EMI would be Rs 55,541 a month.
A smaller recovery shows the same arithmetic at a lower level. If the revaluation had landed at Rs 75,00,000 instead of Rs 78,00,000, the loan would be Rs 60,00,000, the gain over the first loan would be Rs 2,40,000, and the EMI would be Rs 52,069 a month. The workbook at the end of this guide lets you change the agreed price, both valuations, the LTV, the rate and the tenure, and it recomputes the loan, the shortfall, the EMI and the interest by formula. Our floating versus fixed rate guide explains how the rate you pick changes the EMI math behind these figures.
What if the area in the valuation report is wrong?
An area error is the most common correctable mistake in a valuation report, and it is also the easiest to prove. Builders sell on super built-up area, which adds common areas such as lobbies, lifts and staircases to the flat area. The Real Estate (Regulation and Development) Act, 2016 defines carpet area in section 2(k) as the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or verandah area and exclusive open terrace area, but including the area covered by the internal partition walls. If the valuer priced the flat on super built-up area, the rate per square foot looks low, and the value follows it down.
Check the area figure in the report against the carpet area in the agreement for sale and the sanctioned plan. If they differ, attach both documents to your revaluation request and point to the exact line in the report. RERA also gives you a separate route against the promoter: where the delivered carpet area is short of the area in the agreement by more than 3 percent, the promoter must refund the proportionate amount with interest within 45 days. That route runs against the promoter under RERA, not against the bank, so keep the two disputes apart in your letters. A missing occupancy certificate or a deviation from the sanctioned plan is a different problem again: the valuer discounts the property for it, and no revaluation request fixes a paper gap in the building itself.
How do you escalate if the bank refuses to look again?
Escalate in order, and keep the acknowledgement for every step. The table below is the ladder.
| Step | Who to write to | What to expect |
|---|---|---|
| 1. Branch and credit manager | Written revaluation request with the error list and evidence | A decision under the bank valuation policy, or a refusal in writing |
| 2. Nodal officer | Written grievance, with the branch reply and the acknowledgement attached | A review inside the bank grievance system |
| 3. Principal nodal officer | Written grievance, escalated from the nodal officer | The final internal step before the RBI route |
| 4. RBI Ombudsman | Complaint at cms.rbi.org.in, or by email to crpc@rbi.org.in, or by post to the Centralised Receipt and Processing Centre in Chandigarh | Free, and the helpline is 14448 |
The RBI Ombudsman route runs under the Reserve Bank, Integrated Ombudsman Scheme, 2026, which came into force on 1 July 2026 and replaced the 2021 scheme. You must first complain to the bank. You can file with the Ombudsman if the bank gives no reply within 30 days, or if you are not satisfied with the reply, and you must file within 90 days from the expiry of that timeline or from the date of the last communication from the bank, whichever is later. Compensation can reach Rs 30 lakh for consequential loss plus Rs 3 lakh for loss of time, expenses, harassment and mental anguish. There is no fee at any stage.
Know the limit before you file. The Scheme FAQ lists matters relating to commercial judgement or decision of a regulated entity as not maintainable, so the Ombudsman cannot order a higher valuation. A valuation complaint works at the Ombudsman only as a service complaint: the bank ignored its own valuation policy, refused to share the report, or charged a fee it did not disclose. Frame the complaint that way, with the policy and the paper trail attached, or it will be rejected at the outset.
Sources
Primary sources: Reserve Bank of India, Master Circular, Housing Finance, RBI/2025-26/16, DOR.CRE.REC.No.12/08.12.001/2025-26, dated 1 April 2025, paragraphs 2(C)(i)(b), 2(B)(vii), 3(a) to 3(c) and 11(d), read on the RBI website on 2026-11-08; Reserve Bank of India press release, Reserve Bank, Integrated Ombudsman Scheme, 2026, Press Release 2025-2026/1936, dated 16 January 2026, read on the RBI website on 2026-11-08; Reserve Bank of India, Frequently Asked Questions, Reserve Bank, Integrated Ombudsman Scheme, 2026, questions 1, 9, 10, 16, 17 and 22, read on the RBI website on 2026-11-08. Secondary sources, labelled as such in the text: Bajaj Finance guide on property valuation, including its dispute FAQ and 3 to 6 month validity window; Rao Valuers mortgage valuation guide, 14 October 2026, on panel appointment, borrower paid fees and 3 to 6 month validity; EmiSetu home loan charges guide 2026, on the typical Rs 2,000 to Rs 5,000 valuation fee and the 2019 lender card example; RERA carpet area definition, section 2(k), and the model agreement refund rule, from secondary explainers. All worked example figures are recomputed by formula in the workbook.
External links: RBI Master Circular, Housing Finance, RBI/2025-26/16, RBI press release, Reserve Bank, Integrated Ombudsman Scheme, 2026 and RBI FAQ, Reserve Bank, Integrated Ombudsman Scheme, 2026. All three pages were opened and returned 200 on 2026-11-08, and the document headings on the pages match the citations.
Frequently Asked Questions
Last updated: November 2026. Framework cited: RBI Master Circular, Housing Finance, RBI/2025-26/16, dated 1 April 2025; Reserve Bank, Integrated Ombudsman Scheme, 2026, in force from 1 July 2026.
Can I dispute my bank property valuation?
Yes, you can ask, but no RBI rule binds the bank to agree. The RBI Master Circular requires a board approved valuation policy and independent valuers, and says nothing about revaluation. Write to the branch with the specific errors in the report and the evidence that supports a higher value, and ask for the bank revaluation policy.
Will the bank accept a valuation I got myself?
Usually no. Banks appoint a valuer from their own panel, and a report from a valuer outside the panel does not bind the bank. Your own report can still help as supporting evidence if it uses recent comparable sales and a correct carpet area, but the bank decides on its own panel report.
Who pays for a revaluation?
You usually pay. The valuation fee is typically Rs 2,000 to Rs 5,000, and a second valuation is usually charged again. The fee must appear in your Key Facts Statement, so check that document before you agree. Ask the bank in writing who pays and the exact amount.
How long does a revaluation take?
There is no RBI timeline, so the bank sets its own. Ask for the timeline in writing when you file the request. A valuation report is typically valid for 3 to 6 months, so a slow revaluation can expire and force a fresh valuation at your cost.
Can the second valuation come in lower than the first?
Yes. A second valuer works independently and can value the property below the first figure. Ask in writing before you agree whether the bank will use the second value, keep the first value, or take the lower of the two, because the answer changes what you risk.
Does the RBI set the LTV on my home loan?
Yes, the RBI caps it. For individual housing loans from banks, the maximum LTV is 90 percent up to a Rs 30 lakh loan, 80 percent above Rs 30 lakh up to Rs 75 lakh, and 75 percent above Rs 75 lakh. A bank may lend less than the cap, for example if your income does not support the EMI.
Can the RBI Ombudsman raise my valuation?
No. The Ombudsman looks at deficiency in service, and matters of commercial judgement by a bank are not maintainable under the Scheme. Use it if the bank ignored its own valuation policy, refused to share the report, or charged an undisclosed fee, not to ask for a higher number.
Revaluation impact checker workbook
Enter your agreed price, both valuations, LTV, rate and tenure, and the workbook works out the loan on each value, the shortfall, the gain from revaluation, and the EMI and interest on each loan, and checks every figure against this guide.