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Loan to Value Calculator

Calculate the LTV ratio for home loans and find the maximum loan amount a lender will approve based on property value. Free, instant.

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⚠️ 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.

What do you want to calculate?
₹
₹
LTV Ratio
80.00%
Within the 80% RBI limit for a home loan of this size
Property Value
₹50,00,000
Loan Amount
₹40,00,000
Down Payment
₹10,00,000
20.00% of value
0%LTV: 80.00% — Within the 80% RBI limit for a home loan of this size100%
LTV limits: RBI rules for home loans, typical lender limits for the rest
Loan TypeSourceMax LTVMin Down Payment
Home loan up to ₹30 lakhRBI90%10%
Home loan above ₹30 lakh, up to ₹75 lakh ← your loanRBI80%20%
Home loan above ₹75 lakhRBI75%25%
Car loanTypical lender, not an RBI rule85%15%
Loan against propertyTypical lender, not an RBI rule70%30%

The RBI home-loan limit follows the size of the loan, not the property. It is the cap for individual home loans (RBI circular of October 2015); your lender can set a lower one.

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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, laid out in its Master Circular on Housing Finance. 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%) as 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?
Lower is better, and for a home loan the limit that counts is the RBI cap for a loan of your size: 90% up to ₹30 lakh, 80% above ₹30 lakh and up to ₹75 lakh, 75% above ₹75 lakh. The calculator checks your LTV against that cap: within it, the loan is allowed on the RBI limit; above it, the lender can only lend up to the cap and you must raise the down payment. A lower LTV also usually earns a better rate, and your lender may set a limit below the RBI cap.
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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