Financial Calculations & Valuation
Beginner
Housing Loan LTV (Loan-to-Value) Ratio & RBI Regulatory Slab Calculator in Python
Calculate maximum permissible Housing Loan quantum and borrower down-payment margin in Python based on RBI regulatory LTV slabs (90%, 80%, 75%) and stamp duty exclusion.
#numpy
Problem Statement
Under regulatory housing finance norms, banks cannot include stamp duty and registration charges in the property value when computing Loan-to-Value (LTV), and maximum LTV steps down from 90% (up to ₹30L) to 80% (₹30L–₹75L) and 75% (above ₹75L).
Formula / Core Logic
Loan <= 30L: Max LTV = 90%
30L < Loan <= 75L: Max LTV = 80%
Loan > 75L: Max LTV = 75%
Total_Out_of_Pocket_Downpayment = (Agreement_Value - Max_Loan) + Stamp_Duty_Registration
Installation
pip install numpy
home-loan-ltv-rbi-tier-slab-margin-calculator-python.py
def calculate_home_loan_ltv(agreement_value, stamp_duty_reg_cost):
# Regulatory LTV slabs based on realizable property agreement value
if agreement_value <= 3333333: # Allows up to 30L loan at 90% LTV
max_ltv_pct = 90.0
max_loan = min(3000000.0, agreement_value * 0.90)
elif agreement_value <= 9375000: # Allows up to 75L loan at 80% LTV
max_ltv_pct = 80.0
max_loan = min(7500000.0, agreement_value * 0.80)
else:
max_ltv_pct = 75.0
max_loan = agreement_value * 0.75
borrower_margin = agreement_value - max_loan
total_upfront_cash_needed = borrower_margin + stamp_duty_reg_cost
return {
'Eligible_Property_Value': round(agreement_value, 0),
'Applicable_LTV_Cap_Pct': max_ltv_pct,
'Max_Sanctionable_Loan': round(max_loan, 0),
'Borrower_Margin_Contribution': round(borrower_margin, 0),
'Total_Upfront_Cash_With_StampDuty': round(total_upfront_cash_needed, 0)
}
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Buy Full Bundle on Gumroad ($19) →Frequently Asked Questions
Q: Why are stamp duty and registration charges excluded from LTV calculation?
Stamp duty and registration are sunk government taxes that cannot be recovered if the bank auctions the property under SARFAESI.