Loan-to-Value Ratio (LTV)
✓ Last verified 14 Sep 2026
The short version
LTV is the loan amount expressed as a percentage of the asset's value being financed - a lower LTV means a larger down payment and usually better loan terms, since the lender's risk is correspondingly lower.
If a home is valued at ₹80 lakh and the loan sanctioned is ₹64 lakh, the LTV is 80% - meaning you're funding the remaining 20% yourself as a down payment. Lenders often offer better interest rates or terms at lower LTV levels, since a larger borrower down payment reduces the lender's risk if the loan needs to be recovered through the asset. LTV limits also vary by asset type and loan amount, and are one of the specific terms worth checking in your sanction letter.
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