Loan value

Loan value,

Definition of Loan value:

  1. Amount a lender will lend against an asset used as a collateral to secure the loan. Generally, lenders accept only that asset as a collateral which has an appraised liquidation value at least 25 percent higher than the loan amount (to cover liquidation and other charges in case of a foreclosure). The difference between the market value of a collateralized asset and the amount of loan advanced against it called haircut.

Meaning of Loan value & Loan value Definition