Know All About the Workings of an LTV Calculator

A loan against property is a popular method of obtaining a large sum of money by pledging their existing commercial or residential property with a lender as collateral and one of the primary benefits of a loan against property is that you may use the funds for any expense that you may have for example travel expense, education fees abroad, debt consolidation, or property renovation. 

A lender, on the other hand, will only sanction up to 50% to 70% of your property loan based on the eligibility criteria that you meet, and after conducting a thorough inspection of your property, the lender will determine your loan to value ratio based on the current market value of your property. The LTV you receive is determined by a number of factors, including the location, age, condition, and type of your property. When applying for a loan against property, keep in mind that a residential property will receive a higher LTV ratio because it has a higher resale value.

The loan-to-value ratio is calculated by dividing the maximum amount you are eligible to borrow by the appraised value of the pledged property. To represent this ratio in percentage, multiply the result by 100. A loan to value calculator is an online tool that can help you determine the estimated sanction amount that you can obtain from your property. This tool is completely free to use and requires very little information.

Here's how to use a loan to value calculator:

Step 1: Visit the loan to value calculator. 

Step 2: Fill in the required parameters:

• Employment Type (If salaried or self-employed professionals)
• Valuation of your property 
• Property Type (Residential or Commercial Property)
• Tenor Period
• Rate of Interest 

Step 3: Submit the details to view the following results:

• The monthly instalments (EMI) you will pay over the course of your tenor.
• Total Interest payable.
• Total principal amount.
• Repayment Schedule. 

Along with a loan against property LTV calculator, you should also consider using the numerous other online tools at your disposal, such as a property loan calculator, EMI calculator, and eligibility calculator. All of these online tools will assist you in gaining a better understanding of your financial situation so that you can make more informed decisions.