Loan-to-value ratio
The share of an asset's value that a lender will finance. The rest is your down payment. LTV decides how much cash you need on day one, which is usually the binding constraint on a purchase rather than the EMI.
What it means
The share of an asset's value that a lender will finance. The rest is your down payment.
Why it matters to a household
LTV decides how much cash you need on day one, which is usually the binding constraint on a purchase rather than the EMI.
Where it trips people up
Forgetting that stamp duty, registration and legal costs sit outside the LTV entirely. On property they add roughly 7% of the price, all payable in cash.
In an Indian household
RBI caps home loan LTV by ticket size — around 90% for smaller loans, 80% in the middle, 75% for large ones. Plots are funded less, typically around 70%.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Loan-to-value ratio
The share of an asset's value that a lender will finance. The rest is your down payment.
Why does it matter?
LTV decides how much cash you need on day one, which is usually the binding constraint on a purchase rather than the EMI.
What do people usually get wrong?
Forgetting that stamp duty, registration and legal costs sit outside the LTV entirely. On property they add roughly 7% of the price, all payable in cash.
Is there anything India-specific?
RBI caps home loan LTV by ticket size — around 90% for smaller loans, 80% in the middle, 75% for large ones. Plots are funded less, typically around 70%.