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Loan to value ratio (LTV)
This helps calculate the loan amount that a prospective borrower is eligible for on the basis of the total cost of property. There is an upper limit here on the maximum loan amount that a person is eligible for. The maximum amount of loan is pegged to the cost of the property.
The loan eligibility according to the other parameters may be higher but it can't exceed the cost of the property. The ratio varies between 70 and 80 percent of the registered value of the property.
For example, a prospective borrower may be eligible for a loan of Rs 1 crore based on the income criteria. However, in case the registered value of the property is Rs 80 lakhs, and LTV is 70 percent, the bank will finance up to Rs 56 lakhs only.
The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014.
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