RBI-Mandated LTV Limits
| Loan Amount | Max LTV | Min Down Payment | Example (₹1 cr) |
|---|---|---|---|
| Up to ₹30 lakh | 90% | 10% | Loan ₹27L · Down ₹3L |
| ₹30 lakh – ₹75 lakh | 80% | 20% | Loan ₹60L · Down ₹15L |
| Above ₹75 lakh | 75% | 25% | Loan ₹75L · Down ₹25L |
LTV is on bank valuation — not deal price: If you buy for ₹1 crore but bank values at ₹90 lakh, at 80% LTV you get ₹72 lakh loan. The ₹28 lakh gap (₹10L bank-deal gap + ₹18L down payment) comes from own funds.
Total own funds needed: For ₹1 crore property at 80% LTV: Down payment ₹20L + Stamp duty ~5% ₹5L + Registration 1% ₹1L = ₹26 lakh minimum from own savings. Plus GST if under-construction. Budget 26–30% of property value as own funds, not just 20%.
Related Terms
Frequently Asked Questions
LTV (Loan-to-Value) is the percentage of property value financed by the bank. At 80% LTV on a ₹1 crore property, the bank lends ₹80 lakh and you arrange ₹20 lakh as down payment. RBI mandates maximum LTV of 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh, and 75% above ₹75 lakh.
LTV directly determines minimum down payment. At 80% LTV on ₹1 crore, you need ₹20 lakh down. Add stamp duty (5%) and registration (1%) = ₹6 lakh more — total ₹26 lakh own funds. The commonly quoted "20% down payment" is actually 26–30% when all costs are included.
No. RBI LTV limits are hard maximums. Banks may apply stricter internal limits for older properties, certain locations, or lower CIBIL scores. The RBI limits are ceilings not entitlements — actual approved LTV depends on the bank's assessment of property and borrower.
LTV is applied on the bank's independent valuation of the property — not the deal price. If the bank values your ₹1 crore property at ₹90 lakh, at 80% LTV you get ₹72 lakh loan. Any shortfall vs the deal price comes from your own funds.
Options: save a larger down payment, keep loan amount in a higher LTV bracket (loans ≤₹30L get 90% LTV), add a co-applicant for larger loan within LTV limits, or get a top-up loan later after building equity. Never stretch to maximum LTV without a financial cushion for emergencies.