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.