loan value

loan value definition - finance
  1. 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.
  2. 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.
  3. The amount of a whole life insurance policy that the policyholder may borrow against.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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