Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Loan-to-Value ratio compares the loan amount to the appraised value of the collateral property, expressed as a percentage.
LTV is how much of property value the bank will lend — 80% LTV on ₹50 lakh flat means maximum ₹40 lakh loan.
RBI caps LTV for home loans: up to 90% for loans ≤₹30 lakh, 80% up to ₹75 lakh, 75% above. Higher LTV increases risk and may require insurance. Lower LTV improves approval odds and rates.
Property value ₹1 crore, bank offers 75% LTV → max loan ₹75 lakh. You need ₹25 lakh down payment plus registration and stamp duty costs.
LTV = (Loan Amount ÷ Property Value) × 100Banks usually finance agreement value or market value, not stamp duty and registration — budget 5–7% extra in Maharashtra, varies by state.
Rarely for vanilla home loans. PMAY subsidy schemes effectively improve affordability but LTV caps still apply on base loan.
Typically 50–70% of property market value, lower than purchase home loans due to different product risk profile.