Shreyaa Kapoor Instagram – Loan-To-Value Ratio (LTV Ratio) or Loan-To-Cost Ratio (LTC Ratio) simply tells the loan applicant the maximum percentage of the value of the pledged asset that shehe can borrow. 🙌🏼
According to the guidelines issued by the Reserve Bank of India (RBI), the LTV ratio for home loans can go up to 90% of the property value for loan amounts of Rs.30 lakh and below. ⬇️
For loan amounts that are above Rs.30 lakh and up to Rs.75 lakh, the LTV ratio limit has been set to up to 80% while for loan amounts above Rs.75 lakh, the LTV ratio can go up to 75%.🌟
The final amount of borrowing is determined on multiple factors including but not limited to the value of the security, eligibility of the borrower, a good CIBIL Score, etc. 🌱
To determine the maximum amount that can be lent, the financial institution shall use this LTV ratio to cap the maximum amount of loan depending on the value of the security.🙌🏼
This is also helps determine the down payment amount you need when taking a home loan 🌱
Share this with your friends taking a home loan soon! 🙌🏼
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[home loan, home loan tips, personal finance, finance tips, money tips, money hacks, loan] | Posted on 18/Jun/2024 20:00:08
