loan value investment & finance definition
- The
maximum amount that a lender is willing to lend against collateral. For
example, if a lender is willing to loan 80 percent of the appraised value of a
$1 million house, then the loan value is $800,000.
-
The maximum value of securities that a broker can lend to a customer through a
margin account, mandated by the Federal Reserve through Regulation T.
-
The amount of a whole life insurance policy that the policyholder may borrow
against.
See loan value in Wall Street Words
The maximum amount that may be borrowed, using a security as collateral. If the Federal Reserve specifies an initial margin requirement of 50% under Regulation T, $5,000 in securities would have a loan value of $2,500.
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