Loan-to-value (LTV)

Lending

Loan-to-value (LTV) is a measure used by lenders to evaluate the risk of giving a loan. It compares the amount of the loan to the value of the asset being used as collateral.

Definition: Loan-to-value (LTV) is a measure used by lenders to evaluate the risk of giving a loan. It compares the amount of the loan to the value of the asset being used as collateral.