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Loan to Value Calculator

Calculate LTV ratio for home loans and find max loan amount.

⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

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RBI / Typical lender LTV limits
Loan TypeMax LTVMin Down Payment
Home Loan ≤ ₹30 lakh90%10%
Home Loan ₹30–75 lakh80%20%
Home Loan > ₹75 lakh75%25%
Car Loan85%15%
Loan Against Property70%30%

Rows in red indicate your LTV exceeds that limit.

Why LTV matters when taking a home loan

The LTV ratio is one of the first numbers a bank checks when you apply for a home loan. It determines how much risk the lender takes on. A lower LTV (larger down payment) means less risk for the bank and usually translates to better interest rates and faster approval for the borrower.

How to use this calculator

  • Calculate LTV: Enter your loan amount and property value to see your LTV ratio and whether it falls within RBI limits.
  • Calculate max loan: Enter property value and desired LTV to see the maximum loan you can apply for.
  • Calculate required property value: Enter your loan amount and target LTV to find the minimum property value required.

LTV and property types

Different asset classes have different LTV norms. Residential property gets the highest LTV (up to 90% for small loans). Commercial property and loan against property (LAP) are capped at 60–70%. Vehicle loans can go up to 85%. Gold loans can reach up to 75% of the gold value as per RBI rules.

RBI LTV limits for home loans in India

The Reserve Bank of India sets maximum LTV ratios for housing loans as a prudential measure. For loans up to ₹30 lakh, the cap is 90% LTV — meaning you must bring at least a 10% down payment. For loans between ₹30 lakh and ₹75 lakh, the cap drops to 80% (20% down payment). For loans above ₹75 lakh, the maximum LTV is 75% (25% down payment). These are regulatory ceilings; individual banks may set lower limits based on your credit score, property type, and internal risk policy.

Who uses an LTV calculator

First-time home buyers use it to understand how much down payment they need before approaching a bank. Property investors calculate LTV on potential purchases to stay within their target leverage ratio. Loan against property (LAP) borrowers check how much they can borrow against existing assets. Banks and HFCs (Housing Finance Companies) use LTV as one of the primary underwriting inputs alongside FOIR (Fixed Obligation to Income Ratio) and CIBIL score to determine loan eligibility and pricing.

How LTV affects your interest rate

Lenders price risk into interest rates. A lower LTV signals lower default risk, which often translates to better interest rates — sometimes 0.1–0.3% lower for borrowers who bring 25–30% down payment versus those using the maximum 90% LTV. Over a 20-year home loan, even a 0.2% rate difference saves ₹3–5 lakh in total interest on a ₹50 lakh loan. Additionally, a lower LTV reduces the chance of being underwater on the property (owing more than the current market value) if real estate prices correct.

Frequently asked questions

What is LTV ratio?
Loan to Value (LTV) ratio is the percentage of a property or asset value that a lender is willing to finance. LTV = (Loan Amount ÷ Property Value) × 100. A 90% LTV on a ₹50 lakh property means the lender funds ₹45 lakh and you pay ₹5 lakh (10%) down payment.
What is the maximum LTV for home loans in India?
As per RBI guidelines: up to 90% LTV for home loans up to ₹30 lakh; up to 80% for loans between ₹30–75 lakh; and up to 75% for loans above ₹75 lakh. Higher LTV generally means stricter eligibility checks and may require mortgage insurance.
Why does a lower LTV benefit borrowers?
A lower LTV (larger down payment) typically leads to lower interest rates from lenders, easier loan approval, no requirement for private mortgage insurance, and lower total interest paid over the loan tenure. It also provides a buffer against property value decline.
What is a good LTV ratio?
75% or below is considered conservative and gives the best terms. 75–85% is moderate and acceptable to most lenders. Above 85% is high — some lenders may decline or charge a higher rate. Above 90% is available only for specific loan categories under ₹30 lakh.
How is LTV different from LCR?
LTV (Loan to Value) measures how much of an asset is financed by a loan. LCR (Loan Coverage Ratio) or DSCR (Debt Service Coverage Ratio) measures the ability to repay from income. Both are important: LTV determines how much you can borrow; DSCR determines if you can afford to repay it.

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