Loans
LTV
pronounced: [El-Tee-Vee]
Loan-to-Value ratio represents the ratio of a loan to the value of the asset purchased.
RBI guidelines mandate maximum LTV of 80-90% for home loans depending on the property value.
Key Facts
| Fact | Value |
|---|---|
| Interest Rate | 90% p.a. |
Example
A ₹50 lakh home loan at 8.5% p.a. for 20 years has an EMI of ₹38,601/month. Total interest paid = ₹42,64,240 — almost equal to the principal. Making part-prepayments from year 6 can reduce tenure by 4+ years.
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Last updated: 21 May 2026