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Copper Price Fluctuation and its Effects on Company Stocks

The Power of Metals and Commodities in Stock Market Trading One of the most important things in the stock market is knowing about metals and commodities. If you can understand the metals in commodities, you can trade in them. You can also trade stocks related to commodities. Copper: A Versatile Metal This is metal. The starting metal used by humans in the early stages is copper. And not just because it was used in the beginning; even now, after steel and aluminum, copper is used more. This is the third-largest metal-consuming country in the world. Usually, copper is seen more in electric wires. Because it conducts electricity easily and has less resistance compared to the other metals, The companies that are making these electric wires are listed in the stock market, and for them, copper is an important raw material. Historical significance and ongoing use Most of the electronics and machines we use, and most importantly, in construction, in building infrastructure, copper plays a very...
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Can You Afford Your Real Estate Investment? Understanding LTV and LTC Ratios

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If you want to take a loan for a valid purpose then you must have known that, you do not get a 100% loan. The loan actually depends on the LTV or loan to value ratio; it is also called loan to cost ratio.


  • What is the formula of loan to value or loan to cost ratio?
  • How are they calculated?
  • And how do you get the maximum LTV?
  • How is this calculated?


What is LTV.

Full form LTV is a loan to value ratio. Both words have the same meaning Let's understand it with an example: Suppose you want to buy a home which cost around 50 lakh rupees. suppose you do not have 50 lakhs in cash and only solution is to get a home loan.



How much maximum home loan can you get?


It depends on the loan to value or loan to cost ratio. What is the formula of loan to value.

The loan to value formula is the loan amount divided by asset value.



As we are talking about the home here the asset value is the property value i.e. 50 lakh rupees. And the loan amount you get And how much maximum amount of loan to value ratio can the bank give you Will be calculated. if the bank says we will give the maximum loan of 80% so the maximum loan to value ratio is 80%.



Whether it is a home loan, car loan, bold loan or you want to take a loan for a project generally, banks give loans only up to 80% either of the project cost or the asset value as 80% of 50 lakhs is 40 lakhs and the remaining 10 lakh rupees will be your down payment which you have to arrange with your own sources. They can be your savings or you sell your other asset 

and get this Rs.10 lakhs from there.



Every bank decided the loan amount with its risk profile like


What kind of people can I give up to 80%?

What kind of people can I give up to 70%?

What kind of people can I give up to 90%?


Usually Every bank has its own separate risk profile.



Risk profile


The higher the LTB, the higher will be the bank's risk bank give loans on the value of your assist so that you can at least they can sell the house and can recover their loan, Bank can also sell it to another company and can cover his money by selling it off to the factory.



That's why the margin of 20% is kept by the bank another example is that if Banks had given the loan of 90% And the house would have sold for only Rs 40 lakh. Then bank had to bear the loss of 5 lakhs only Because of this, the higher the LTV the higher will be the bank's risk and in that case, and because of it interest rate also rises that's why banks give higher LTV to such customers, and Charges a bit more interest rates on them Because of these precautions lower LTV protects the bank against devaluation and default risk




How can you get a higher LTV?


If you want to get higher LTV And want to take a loan more than your limit then very first thing, your credit score should be very nice your CIBIL score should be 750+.


Second is the factor of age if a person of 25 years apply for a loan then there are chances that he can get an LTB of up to 90%


But if someone is of 55 years then it's very difficult for him to get the LTV about 80% Because there the age of serving the loan here young people are benefitted a bit because they have a long time period but if there's a person of 50-55 years, then he'll be retired very soon and he has very little time to repay the loan.


That's why there are very few chances that he can get an LTB of more than 80%
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