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What is the LTV Ratio Calculator?

The LTV, or Loan-to-Value, ratio is a key factor in bank loans. It shows how much of the property's value is covered by the loan. Hero FinCorp's LTV Calculator simplifies this process. It allows you to assess and compare before applying for a loan. Our loan-to-value calculator helps you secure the best loan deal for your needs. Let's discover how.

How Does Loan-to-Value Ratio Calculator Work?

Hero FinCorp's LTV ratio calculator gives you the financial clarity you need, effortlessly determining the Loan-to-Value ratio.

All you need to do is follow these simple steps -

Step 1: Visit Hero FinCorp's Loan-to-Value rate calculator.

Step 2: Input your loan amount and property value.

Step 3: All done! Our LTV calculator online will take care of the rest. It applies the LTV formula and crunches the numbers for you.

Easily calculate the Loan-to-Value percentage of your property's value covered by the loan.

This takes away your dependence on your loan provider to determine the eligible loan amount. So, say goodbye to guesswork and seamlessly calculate the Loan-to-Value ratio with the online calculator.

What is the LTV Ratio Calculation Formula?

The Loan-to-Value (LTV) ratio for home loans is calculated by dividing the loan amount by the appraised value of the property and multiplying the result by 100.
The formula is:

ParticularsAmount
Property valueRs 80 lakh
Amount borrowedRs 48 lakh
LTV = Amount borrowed/Property value60%

LTV Ratio (%) = Amount Borrowed/Property Value X 100

Let's say you're applying for a Property Loan of Rs 50,00,000, and the appraised value of the property is Rs 1,00,00,000. Using the LTV formula:

LTV Ratio (%) = (50,00,000/1,00,00,000) X 100

The LTV ratio is 50%

This ratio helps lenders assess risk. The lower LTV ratios indicate less risk, potentially leading to better loan terms for the borrower.

How to use a Hero FinCorp Loan-to-Value Ratio Calculator?

Calculating LTV is easy with Hero FinCorp's LTV Calculator. To calculate LTV, follow these easy steps:

Visit the Website

Go to the Hero FinCorp website to access the LTV Calculator.

 

Input Loan Amount

Enter the desired loan amount into the designated field.

 

Property Value

Input the appraised value of your property or asset.

 

Click 'Calculate'

Start the calculation by clicking the designated button.

 

Review Results

Instantly receive the Loan-to-Value ratio.

 

Hero FinCorp's Loan-to-Value Calculator streamlines the process of LTV calculation. It provides clarity in your loan-borrowing journey.

Benefits of Using Loan-to-Value Ratio Calculator

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Smart decisions

Easily assess your loan's risk and make smart financial choices.
 

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Refinance with ease

Measure the impact of refinancing on your LTV ratio for better loan terms.
 

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Quick and Easy

It requires no complex math. You can just input values to calculate the loan-to- value ratio instantly.
 

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Gain Insights

Understand your loan details with the calculator. It ensures your investment aligns with your goals.
 

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Planning

Plan the loan borrowing with ease. Make every decision count for your financial well- being.
 

Factors that May Affect LTV Ratio

Property value changes

Market changes can impact the loan-to-value ratio.
 

Loan Repayment

Reducing loan balances can positively affect LTV. It can lower the Loan-To- Value.

Home Improvements

Improvements can increase property value. Making home renovations can get you a higher percentage of loans.

Market Conditions

Economic shifts may influence property values.

Loan Type

Different loans have varying LTV requirements.

Valuation Accuracy

Correct property valuations ensure accurate ratios.

Frequently Asked Questions (FAQs)

Yes, refinancing can help improve your LTV ratio. LTV can adjust the loan amount relative to your property's value. This can potentially help in securing better loan terms.
To improve your LTV ratio, you can make extra mortgage payments. It is also possible by increasing your property's value by adding value. Examples include – Going in for home renovation or prepaying the loan balance.
Generally, a lower LTV ratio is better. It indicates less financial risk for lenders. This can lead to more favourable loan terms.
No, the LTV ratio varies for different types of loans. It depends on factors like the loan purpose and the type of collateral involved.