What is Loan to Value?

Loan to value (LTV) refers to the ratio of the loan amount to the value of the collateral, which is more common in mortgage loans, such as real estate mortgage loans.

Loan-to-value ratio

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Loan to value (LTV) refers to the ratio of the loan amount to the value of the collateral, which is more common in mortgage loans, such as real estate mortgage loans.
Chinese name
Loan-to-value ratio
Foreign name
loan to value
Shorthand
LTV
Common affairs
Mortgage, such as a mortgage
example
For example, if a client A's real estate mortgage loan, the mortgaged property is valued at 1 million yuan, and the bank's credit policy stipulates that LTV <70%, the bank can lend A client a maximum of 700,000 yuan in loans.
LTV for different collateral loans varies according to the bank's own policies. Reflect the bank's risk expectations for collateral!
This article comes from: People's Congress Economic Forum Documents Help Zone Edition, detailed references:

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