Calculate home-loan LTV ratio in India
LTV shows how much of a property’s entered value is covered by a loan. A ₹60 lakh home loan against a ₹75 lakh value gives 80% LTV. This tool separates that main-loan ratio from combined secured debt, sanctioned overdraft exposure and ownership equity, so additional borrowing is not hidden behind a single percentage.
This India LTV calculator displays the main home-loan ratio, combined secured exposure, sanctioned overdraft exposure, home equity, target-LTV paydown and potential borrowing room.
LTV, combined LTV and sanctioned exposure
Main home-loan LTV uses only the primary loan. Combined LTV adds other loans secured on the property and the amount drawn on a secured overdraft. The sanctioned-exposure ratio uses the full overdraft limit because undrawn secured credit may influence an institution’s assessment of further borrowing.
Home equity is the accepted property value minus outstanding secured balances. It is not automatically available to borrow; institutions also check income, obligations, credit history, title, property details and loan purpose.
Loans up to ₹30 lakh
Current RBI prudential tables for scheduled commercial banks and housing finance companies distinguish LTV bands for individual housing loans up to ₹30 lakh. A lender may still apply a stricter margin.
₹30 lakh to ₹75 lakh
Prudential treatment changes with the loan-size and LTV band. The calculator reports the ratio but does not convert a regulatory risk-weight band into an approval guarantee.
Loans above ₹75 lakh
Higher-value housing loans may be subject to a lower LTV planning ceiling. Confirm the current rule for the institution and product involved.
Top-up or property loan
A top-up or loan against property can have different LTV, pricing, tenure and documentation from a purchase home loan. Use a custom target matching the product.
Why lender valuation changes the LTV
The bank or housing finance company may use a technical valuation and eligible property cost rather than the number you expect. If the accepted value is lower, LTV rises. Use the sensitivity table to model a 10% or 20% valuation difference.
RBI guidance generally excludes stamp duty, registration and documentation charges from the property cost used for housing-loan LTV, subject to limited exceptions and the rules applicable to the institution. These costs may therefore require additional cash.
India housing-loan LTV guidance
RBI prudential rules use loan amount and LTV bands when assigning treatment to individual housing loans. Those rules differ across regulated-entity categories and can change; lenders may also apply stricter credit policy. Review the current RBI Handbook of Regulations at a Glance and the institution’s written criteria.
The calculator uses the current proposal amount to provide a planning-band indicator. It does not determine regulatory classification, risk weight, sanction amount or borrower eligibility.
Using LTV for down payments, transfers and usable equity
For a purchase, down-payment percentage and LTV broadly add to 100% when the accepted value equals the price and no costs are financed. For an existing owner, usable equity to a chosen target equals the target percentage of accepted value minus current secured debt. For a balance transfer, include any approved top-up and costs added to the loan.
Use the India down payment calculator for purchase cash requirements and the India home equity calculator for repayment and long-term equity scenarios.
Why the overdraft limit can change borrowing room
Suppose a ₹1 crore property secures a ₹60 lakh home loan, ₹5 lakh of other debt and ₹2 lakh drawn on a ₹10 lakh overdraft. Main-loan LTV is 60%, combined drawn LTV is 67%, and sanctioned exposure is 75%. At an 80% target, room based on drawn balances is ₹13 lakh, while room after the full overdraft limit is ₹5 lakh. The unused limit does not reduce ownership equity, but this model counts it when estimating further borrowing room.
Enter proposed balances, not just the increase
The proposed home-loan and other-secured-debt inputs replace their current counterparts in the proposed ratio. The current drawn overdraft is then added. Enter the total expected balances after the transaction, rather than only the extra amount requested. Target paydown uses current drawn debt, while additional room deducts sanctioned exposure.
A lower valuation can require more cash
A ₹60 lakh loan is 80% of ₹75 lakh, but about 85.7% of ₹70 lakh. No extra borrowing is needed for the ratio to rise; the denominator alone has changed. Use the lender-accepted value and treat the amount-based indicator as a simplified planning comparison, not an approval or regulatory classification.