How to use this home loan LTV calculator
- Property value: what the flat or house is worth today, or the price if you are buying.
- Home loan amount: the principal you owe today, or the amount you plan to borrow.
- Open "More options" to add Other loans on this property, such as a top-up loan, for a combined LTV.
- Target LTV starts at 80%. Set it to any level you want to reach. If it is above the RBI cap for your loan size (90%, 80% or 75%), the calculator uses the cap instead, since banks won't lend beyond it.
The result shows your LTV and whether it is within the RBI cap for a loan of that size. Below it you will find your equity, how much you would need to pay down to reach your target, the equity you could still borrow against, and the largest loan the RBI caps allow on your property. The chart shows how your LTV would move if the property’s value rose or fell.
The LTV formula
LTV = home loan ÷ property value × 100Combined LTV = (home loan + other loans on the property) ÷ property value × 100Equity = property value − all loans on it Worked example
You are buying a flat worth ₹75 lakh with a ₹55 lakh home loan. Your LTV is 55 ÷ 75 × 100 = 73.3%, and your equity is ₹20 lakh, or 26.7% of the value.
A ₹55 lakh loan falls in the ₹30–75 lakh band, where banks commonly lend up to 80%, so you are within the cap. The most the caps allow on this flat is ₹60 lakh, ₹5 lakh more than you plan to borrow. The flat’s value would have to fall 8.3%, to ₹68,75,000, before your loan went above 80% of it.
Borrow ₹65 lakh instead and the LTV is 86.7%, above the 80% cap. You would need to put in ₹5 lakh more of your own money.
RBI loan-to-value caps
Banks commonly lend up to 90% of the property value for home loans up to ₹30 lakh, 80% for loans of ₹30–75 lakh and 75% above ₹75 lakh. The rest is the buyer’s own contribution, the down payment that is sometimes called margin money. The largest loan at different property values:
| Property value | Maximum loan | Share of value | Own contribution |
|---|---|---|---|
| ₹30,00,000 | ₹27,00,000 | 90% | ₹3,00,000 |
| ₹35,00,000 | ₹30,00,000 | 85.7% | ₹5,00,000 |
| ₹40,00,000 | ₹32,00,000 | 80% | ₹8,00,000 |
| ₹60,00,000 | ₹48,00,000 | 80% | ₹12,00,000 |
| ₹75,00,000 | ₹60,00,000 | 80% | ₹15,00,000 |
| ₹90,00,000 | ₹72,00,000 | 80% | ₹18,00,000 |
| ₹1,00,00,000 | ₹75,00,000 | 75% | ₹25,00,000 |
| ₹1,50,00,000 | ₹1,12,50,000 | 75% | ₹37,50,000 |
Look at the band edges. On a ₹35 lakh home, 90% would be ₹31.5 lakh, above ₹30 lakh, while 80% is only ₹28 lakh. The most you can borrow is therefore ₹30 lakh, the top of the 90% band. In the same way, on any home worth between about ₹93.75 lakh and ₹1 crore the maximum loan stays at ₹75 lakh. Within those ranges, every extra rupee of price has to come from your own pocket.
There is no PMI in India. A high LTV does not add an insurance premium; the cap simply limits the loan. To see the loan your income supports as well, use the home loan eligibility calculator, which applies both FOIR and these caps.
How to lower your LTV
- Put in more of your own money. A bigger down payment is the direct route, and on a purchase it may be the only one.
- Part-prepay the loan. Under RBI rules there is no prepayment charge on a floating-rate loan taken by an individual for non-business purposes. The home loan prepayment calculator shows how quickly the balance falls.
- Let time work. Every EMI reduces the principal, and if the property’s value rises, your LTV falls on both counts.
Before taking a top-up loan or a balance transfer with extra borrowing, add it under "Other loans on this property". In the example, a ₹10 lakh top-up on the ₹55 lakh loan takes the combined LTV to 86.7%, above the 80% cap for that much borrowing.
Cash you need beyond the down payment
LTV covers the price, but buying costs more. Stamp duty and registration are set by each state: stamp duty is typically about 5–7% of the property value, plus about 1% for registration, and some states offer concessions for women buyers. On a ₹75 lakh flat that is roughly ₹4.5–6 lakh, on top of the ₹15 lakh minimum own contribution. Once you know the loan, check the monthly cost in the home loan EMI calculator.
Frequently asked questions
What is the LTV ratio in a home loan?
What is the maximum LTV allowed by RBI for a home loan?
How much down payment do I need for a home loan?
What is margin money in a home loan?
Why can’t I borrow 80% on a ₹1 crore flat?
Is there mortgage insurance (PMI) on a high-LTV home loan in India?
Sources and further reading
Independent, official guidance on this topic. Rules differ by country, so check the regulator where you live.
- Reserve Bank of India: regulations, notifications and consumer awareness · Reserve Bank of India
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.