Glossary
LTV (Loan-to-Value)
LTV is the home loan as a percentage of the home’s value. RBI caps it, so you always pay part of the price yourself as a down payment.
In plain words
LTV stands for loan-to-value. If a home is worth ₹80 lakh and the bank lends ₹64 lakh (illustrative figures), the LTV is 80%. The rest, ₹16 lakh, is your down payment.
LTV = (loan ÷ property value) × 100
The Reserve Bank of India sets the maximum LTV for individual housing loans: up to 90% for loans up to ₹30 lakh, 80% above ₹30 lakh up to ₹75 lakh, and 75% above ₹75 lakh. Banks can lend less, never more.
A worked example (illustrative)
On a ₹90 lakh home, the loan would be above ₹75 lakh, so the cap is 75%: up to ₹67.5 lakh. You need ₹22.5 lakh as down payment. Then add stamp duty and registration, which banks usually do not fund. At an illustrative 6.6% of value, that is another ₹5.94 lakh. Your cash need is about ₹28.4 lakh, before furniture and moving.
The “value” is the bank’s own figure, which can be below your agreement price. If the bank values the home lower, your loan shrinks and your down payment grows.
Why it matters to you
- LTV decides your down payment, the biggest cheque you will write.
- A lower LTV can sometimes get you a better rate.
- Deposits like corpus and charges like registration usually sit outside the loan.
Our down payment calculator applies the RBI bands and adds registration costs for you.
Read more on the blog
Related terms
See all glossary terms. This page explains a term; it is not legal or tax advice, and rupee figures are illustrative.
FAQ
LTV (Loan-to-Value): common questions
What is the maximum LTV on a home loan?
RBI caps it at 90% for loans up to ₹30 lakh, 80% above ₹30 lakh up to ₹75 lakh, and 75% above ₹75 lakh.
Does LTV include stamp duty?
Generally no. Banks lend against the property’s value, not stamp duty or registration. Plan those from savings.
What value does the bank use?
Its own valuation of the home, which may be lower than your agreement price.
Can I borrow less than the maximum LTV?
Yes. A bigger down payment means a smaller loan, a lower EMI and less interest overall.
Want someone to walk you through it?
Ask the Reeva team about this, or anything else on your first-home paperwork. We will call back, with no pressure to buy.