Lending process is a center of concern for banks as well as the business world. In doing so, Property valuation represents one of the major building blocks of the mortgage system. However, absence of independent valuation organizations and lack of standardize valuation provision are the challenges to calculate the lending value of the property. In this paper, attempts are made to identify the valuation process and the loan characteristics that affect the mortgage lending value of property. A survey study research design of three private and one state Banks were employed in this paper. Field survey, Interviews and questionnaires were used to collect data for the study and the data is carefully analyzed by descriptive statistics .Accordingly, the findings of the study shows that lack of standardized valuation provision for lending purposes and absence of independent valuation organ that could be responsible in regulating and controlling the property valuation practice had high influence on the credit process of the banks. Key words: Mortgage lending value, Loan policy, Valuation