LTV Calculator
Calculate Loan-to-Value (LTV) ratio for property and asset-based loans.
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Calculate LTV
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LTV Ratio
LTV (Loan-to-Value) is the ratio of loan amount to the value of the asset. Lower LTV is better for loan approval.
LTV Ranges
- LTV < 70%: Excellent (easy approval)
- LTV 70-80%: Good
- LTV 80-90%: Fair
- LTV > 90%: Difficult approval
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Frequently Asked Questions
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LTV = (loan amount ÷ property value) × 100. It shows how much of the property's value is financed through debt. An 80% LTV on a ₹50 lakh property means a ₹40 lakh loan and ₹10 lakh down payment.
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Higher LTV means higher risk for the lender. Indian banks typically cap LTV at 75–90% depending on property value (RBI rules) and usually offer better interest rates and faster approval for lower-LTV loans.
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Aim for 75–80% LTV. This keeps EMIs manageable, avoids higher insurance costs, and gives you a buffer if property prices dip. RBI caps LTV at 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh, and 75% above ₹75 lakh.
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No. Banks lend only against the property's agreement value. Stamp duty, registration, and other charges must be paid from your own funds, so plan for an extra 6–8% of property value on top of the down payment.
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