LTV Calculator
Loan-to-Value ratio, risk rating & eligible lenders
Your LTV
75%
Max LTV Allowed
80%
Eligible Loan
₹64.00 L
Down Payment Gap
₹0
How is LTV Calculated?
The Loan-to-Value ratio represents how much of the property's cost the bank is willing to finance versus how much you need to pay upfront (the down payment).
Frequently Asked Questions
What is LTV in a Home Loan?
LTV stands for Loan-to-Value ratio. It is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. For a home loan, it determines the maximum loan amount a bank will finance against your property's value.
What are the RBI guidelines for Home Loan LTV?
The RBI mandates maximum LTV limits for home loans in India: Up to 90% LTV for loans up to ₹30 Lakhs. Up to 80% LTV for loans between ₹30 Lakhs and ₹75 Lakhs. Up to 75% LTV for loans above ₹75 Lakhs.
Is LTV calculated on market value or agreement value?
Banks calculate LTV based on the property's registered agreement value or the bank's technical valuation, whichever is lower. Registration charges and stamp duty are typically NOT included in the property value for LTV calculation.
Does a lower LTV get me a better interest rate?
Yes, often. A lower LTV (e.g., 60% instead of 80%) means you are bringing more of your own money as a down payment. This reduces the bank's risk. Some banks offer 0.05% to 0.10% lower interest rates to customers with low LTV ratios.
What is the LTV for Loan Against Property (LAP)?
The LTV for Loan Against Property is significantly lower than for home loans. For residential properties, the LAP LTV is usually capped at 60% to 70%. For commercial properties, it is usually capped at 50% to 60%.