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Loan to value

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Loan to value

  1. 1. DevTech Finance FINANCIAL TERMS WHAT IS LOAN-TO-VALUE?
  2. 2. Loan-TO-VALUE • A Loan to Value (LTV) ratio describes the amount of a loan one takes compared to the value of the property/asset securing the loan. • Example: Assume you want to buy a home worth Rs.10,00,000. You have Rs.3,00,000 available for a down payment, so you will need to borrow Rs.7,00,000. • Your LTV ratio will be 70 percent because the amount of the loan is 70 percent of the value of the house.
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