LTV (Loan-to-Value)

LTV (Loan-to-Value) is the ratio between the loan amount and the value of the collateral: LTV = Loan Amount ÷ Collateral Value. A lower LTV means the collateral covers the loan by a wider margin, providing greater protection for investors if the borrower defaults. A higher LTV may offer a higher interest rate but also carries greater risk. The LTV is displayed on every project page.