Calculate Loan to Value ratio (LTV). LCR stands for the Loan to Cost ratio. LTV ratio used by banks to calculate the loan amount that a person is eligible for on the total cost of the property.
There is a upper limit on the maximum loan amount that a person is eligible for for the purpose of loan irrespective of the loan eligibility.
The maximum amount of loan eligible is pegged to the cost or value of the property. The loan eligibility as per the other parameters may be higher but the loan amount cannot exceed the cost / value of the property. (The ratio varies between 70 to 90 percent of the registered value of the property )