LTV
Loan-to-Value ratio — the percentage of property value a bank will fund. Capped at 75-80% for home loans, 60-70% for LAP.
Definition
Loan-to-Value (LTV) is the ratio of the loan amount to the property's market value. Higher LTV means a bigger loan and smaller down payment, but also higher EMI and tighter cash flow. Indian banks typically lend up to 80% LTV for home loans on standard residential properties, dropping to 60-70% for Loan Against Property (LAP) where the end-use is unrestricted.
Higher LTV often attracts a slightly higher interest rate (10-25 bps) and stricter underwriting. The remaining gap (down payment + transaction costs of 6-8%) must come from your savings. Banks may also require additional collateral or insurance for high-LTV loans.
Example
₹1 crore property, 80% LTV → ₹80 lakh loan, ₹20 lakh down payment, plus ₹6-8 lakh stamp duty + registration from own funds.
Calculators that use this
House Affordability
Find the maximum home price you can afford based on your income, existing EMIs, and down payment using bank-style FOIR rules.
Open calculatorLAP
Calculate EMI, total interest, and maximum loan against your property at 60-70% LTV. Includes FOIR-based eligibility check.
Open calculatorStamp Duty
Estimate stamp duty and registration charges on property purchase across all 28 Indian states, with female-owner concessions and circle rate adjustments.
Open calculatorRelated terms
More Loan terms
See all 30 glossary terms or read our Methodology for how we source these definitions.