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LTV — Loan to Value
The ratio of the loan amount to the value of the property being mortgaged. Banks typically fund 55–75% of property value depending on the product.
LTV determines how much you can borrow against a property. If a property is valued at ₹1 Crore and the LTV is 65%, the maximum loan is ₹65 Lakhs. The remaining ₹35 Lakhs is your equity — the "haircut" the bank takes as protection against value decline.
Residential properties get higher LTVs (65–75%) than commercial (55–65%) and industrial (50–60%). The valuation is done by a bank-appointed registered valuer — and the value can be significantly lower than market price, especially for unique or illiquid properties.