Short answer: Sometimes. If the deviation from the approved plan is minor, a lender may still fund the property, often at a lower loan amount. If it is major, such as unauthorised extra floors or a building far outside its approved setbacks, most lenders will not lend until it is regularised. Policies differ between lenders, so a pre-check before you pay the advance can save your booking amount.
By Vijay Arjun, DME, LIC Housing Finance (code HYD0087), Elite Financial Services. Last reviewed: 29 September 2026.
What counts as a deviation?
A deviation is any difference between what was approved and what was built. Common examples in Hyderabad:
- An extra floor, or a penthouse added on the terrace
- Reduced setbacks, where the building covers more of the plot than allowed
- Stilt parking converted into flats or shops
- Built-up area larger than sanctioned
- Change of use, such as residential floors used as commercial space
How lenders find out
During the loan process, a technical valuer visits the property with the approved plan. The valuer measures the building, compares it with the plan and reports any deviation, usually as a percentage of the approved area. The legal team checks the permissions. If the report shows a significant deviation, the file is either sanctioned for a lower amount or declined.
Minor vs major deviations
| Type | Typical examples | Likely lender response |
|---|---|---|
| Minor | Small increase in built-up area, internal changes, balcony enclosures | May be funded, sometimes at a lower loan-to-value |
| Moderate | Noticeable excess area, minor setback violations | Depends on the lender’s technical policy; supporting documents help |
| Major | Unauthorised floors, parking converted to units, large setback violations | Usually declined until regularised |
What counts as “minor” is set by each lender’s policy and the valuer’s report, not by a single rule.
Can a deviation be regularised?
Telangana has run regularisation schemes for unauthorised layouts (LRS) and, at times, for buildings. Whether a regularisation route is open for your building depends on the scheme in force and the type of deviation. Ask the seller whether any regularisation has been applied for or approved, and get the proceedings in writing. For plots in unapproved layouts, see our guide to loans on LRS plots.
Buying a resale flat with deviations: how to protect yourself
- Get the approved plan and permission before you pay an advance, and compare them with the building.
- Check whether your flat itself is inside the approved area. A flat on an unauthorised floor is far harder to finance and resell than one on an approved floor of a building with minor deviations elsewhere.
- Ask for a lender pre-check. A DSA can often tell you early whether the property is likely to pass.
- Make the advance refundable if the loan is refused on technical or legal grounds.
- Budget for a lower loan amount if the valuer reports a deviation.
See our Telangana property documents checklist for the full list of papers to ask for.
What to do next
Send us the approved plan, permission and a few photos of the building before you commit. We will tell you whether the property is likely to pass LIC HFL’s technical and legal checks.
Get a free property pre-check →
Frequently asked questions
Will a bank give a home loan for a building with an extra floor?
Usually not for a flat on the unauthorised floor. Flats on approved floors may still be funded, depending on the lender’s policy and the extent of the deviation.
How do lenders measure deviation?
A technical valuer compares the building on site with the approved plan and reports the difference, often as a percentage of the approved area.
Can I get a loan if the building has no occupancy certificate?
A missing OC is treated seriously and can limit or block the loan for a completed building. Check with the lender before you commit.
Does a lower valuation mean a lower loan?
Yes. The loan is based on the lower of the agreement value and the valuation, so a deviation that lowers the valuation also lowers the loan.
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About the author: Vijay Arjun is a Direct Marketing Executive with LIC Housing Finance (code HYD0087) and runs Elite Financial Services, an authorised DSA of LIC Housing Finance in Kukatpally, Hyderabad. Disclosure: We are a DSA, not the lender. Loan sanction, amount, interest rate and tenure are at LIC Housing Finance’s sole discretion. Figures are illustrative; your actual eligibility depends on your full profile.