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Is there any difference between Security coverage and LTV (Loan to value %) ?

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Question added by SAI ANIMESH KUMAR N , Senior Manager, Credit , Ahli United Bank
Date Posted: 2016/02/18
SAI ANIMESH KUMAR N
by SAI ANIMESH KUMAR N , Senior Manager, Credit , Ahli United Bank

Security coverage, typically is Value of security to loan amount %. Whereas LTV is Loan amount to Value of security. Security coverage is inverse of LTV. 

Few banks use LTV as a condition and few use minimum security coverage. Few banks use both and this often leads to confusion.

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with the answers ..................................................

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

Full agree with mr. Sai Animesh Kumar Nandivada 

 

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