Definition of loan value

1. amount a lender is willing to loan against collateral. For example, at 50% of appraised value, a piece of property worth $800,000 has a loan value of $400,000.
2. amount that a policyholder can borrow from the cash value of a permanent life insurance policy.

1. amount a lender is willing to lend against collateral. For example, at 50% of appraised value, a piece of property worth $800,000 has a loan value of $400,000.
2. with respect to Regulation T of the Federal Reserve Board, the maximum percentage of the current market value of eligible securities that a broker can lend a margin account customer. Regulation T applies only to securities formally registered or having an unlisted trading privilege on a national securities exchange. For securities exempt from Regulation T, which comprise U.S. government securities, municipal bonds, and bonds of the International Bank for Reconstruction and Development, loan value is a matter of the individual firm's policy.

amount that a policyowner can borrow from a cash value of a permanent life insurance policy.