**Loan-to-value ratio (LVR, also called LTV) tells you how much you borrow compared with the value of the home, car, or other asset securing the loan.** [Source: CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/)

**LVR = (Loan amount ÷ Asset value) × 100**

For example, suppose the home or car is valued at **$50,000**:

| LVR | Loan amount | Your contribution toward the price |
|---|---:|---:|
| 80% | $40,000 | $10,000 |
| 85% | $42,500 | $7,500 |

If you mean you want to **borrow $50,000**, then at 80% LVR the asset would need to be valued at **$62,500**, because $50,000 ÷ 0.80 = $62,500. Assuming that is also the purchase price, you would contribute $12,500, plus any fees and taxes.

So, when a lender advertises a **maximum LVR of 80%**, it means it can finance up to 80% of the asset’s accepted value. It does **not** mean an 80% interest rate.

**Yes, it applies in India too**, where it is usually called **LTV**. Indian lenders use it for home loans, and the maximum allowed depends on the loan amount, applicable rules, and lender policy. An 80% or 85% limit is therefore not universal. [Source: ICICI Bank](https://www.icici.bank.in/personal-banking/blogs/loan/home-loan/loan-to-value)

The calculation works exactly the same in rupees: a ₹40 lakh loan against a home valued at ₹50 lakh has an **80% LTV**. For an unsecured personal loan, there is no pledged asset to use in this calculation.