Loan-to-Value (LTV) Calculator

Most lenders offer home loans up to 80% to 90% LTV. Government-backed loans may allow up to 95% or 100% LTV but with higher rates and mandatory mortgage insurance.

Lower LTV (below 80%) typically qualifies for the best rates. As LTV increases, rates generally increase in tiers.

Yes. For refinancing, LTV is based on the current appraised value and the new loan amount. Property appreciation may lower your LTV, qualifying you for better rates.

LTV Loan-to-Value considers only the first mortgage loan against the property value. CLTV Combined Loan-to-Value includes all loans secured by the property, including second mortgages, home equity lines of credit, or any other liens. For example, if you have a first mortgage of 30 lakh and a home equity loan of 10 lakh on a property worth 50 lakh, your CLTV is 80% even if your LTV on the first mortgage is 60%.

LTV limits vary by property type. For residential properties, lenders typically allow up to 80-90% LTV. For commercial properties, the limit is usually lower at 65-75%. Vacant land and agricultural property have even stricter limits, often capped at 50-60% LTV. The lower limits for non-residential properties reflect the higher perceived risk and lower liquidity of these asset types.

As per RBI guidelines, the maximum LTV for home loans in India is 90% for loan amounts up to 30 lakh, 80% for loans between 30 lakh and 75 lakh, and 75% for loans above 75 lakh. This means for a property worth 25 lakh, you can get a loan of up to 22.5 lakh with a 2.5 lakh down payment. For a 1-crore property, the maximum loan is 75 lakh requiring a 25 lakh down payment. These LTV limits are designed to ensure borrowers have sufficient equity in the property.

LTV directly impacts your home loan interest rate because lower LTV means lower risk for the lender. Most Indian banks offer tiered interest rates based on LTV slabs. An LTV below 75% typically qualifies for the best advertised rates, while LTV of 75-80% may attract a 0.10-0.25% higher rate, and LTV above 80% can be 0.25-0.50% higher. On a 50-lakh loan, a 0.25% rate difference due to LTV means approximately 75,000 in additional interest over a 20-year term.

Car loans in India typically offer LTV ratios of 80-90% of the car's on-road price, meaning you need to pay 10-20% as a down payment. For new cars, most banks offer up to 90% LTV. For used cars, the LTV is lower at 70-80% of the car's current market value, and the maximum LTV depends on the car's age. Vehicles older than 5-7 years may have significantly lower LTV limits or may not qualify for financing at all.

Yes, you can get a home loan with 90% LTV in India, but only if the property value is 30 lakh or less. For a property worth 25 lakh, a 90% LTV means you need only 2.5 lakh as a down payment. However, loans with 90% LTV typically require a stronger credit profile, additional documentation, and may have slightly higher interest rates. You may also be required to take mortgage guarantee insurance to cover the high LTV. Government schemes like PMAY (Pradhan Mantri Awas Yojana) also facilitate high LTV loans for eligible beneficiaries.

In India, mortgage insurance is typically required when the LTV exceeds 80%, though practices vary by bank. If your LTV is above 80%, the lender may insist on mortgage guarantee insurance or a higher interest rate to compensate for the increased risk. For LTV below 75-80%, mortgage insurance is usually not required. The cost of mortgage insurance is typically 0.5-1% of the loan amount per year and can be paid upfront or added to the loan. Making a larger down payment to bring LTV below 80% saves both the insurance cost and gets you a better interest rate.