How does LTV impact loan eligibility for home loan?
The Loan-To-Value (LTV) ratio for Home Loans is decided by the Reserve Bank of India. Currently, LTV is 90% for properties that cost up to Rs. 30 lakhs or less. This means that if you are purchasing a property for Rs. 30 lakhs you can receive 90% of the property value as Home Loan, which translates to Rs. 27 lakhs. The LTV is 80% for properties costing more than Rs. 30 lakhs and up to Rs. 75 lakhs. For properties above Rs. 75 lakhs the LTV is 75%. This has no impact on your loan eligibility. Your loan eligibility will be based on your income, credit history and other such factors.
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