**Loan-to-value ratio (LVR, also called LTV) is the loan amount expressed as a percentage of the value of the asset securing it**, such as a home or car. [CFPB explanation](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 your example, if you borrow **$50,000 at an 80% LVR**:

- The asset’s value is $50,000 ÷ 0.80 = **$62,500**.
- The loan covers **$50,000**.
- You contribute the remaining **$12,500**, assuming the purchase price equals that value and excluding fees.

An **85% LVR** means the loan covers 85% of the asset’s value; you contribute the remaining 15%. If a lender advertises a *maximum* LVR of 85%, that is the upper limit it will finance, subject to your eligibility.

**Yes, it applies in India too.** Indian banks use LTV when assessing home loans. For example, a ₹40 lakh loan against a home valued at ₹50 lakh has an **80% LTV**. The permitted percentage depends on the loan type, amount, lender and applicable rules. [HDFC Bank’s explanation](https://homeloans.hdfc.bank.in/blog/home-finance/home-loan-ltv-ratio-calculation)

LVR generally applies to loans secured by an asset. An unsecured personal loan has no asset value against which to calculate it.