Economics · Economy
In the context of banking and NBFC regulations, what does the Loan-to-Value (LTV) ratio primarily determine?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The structural monthly repayment schedule and tenure for the borrower
- 2The independent market evaluation process of the collateral asset
- 3The maximum annual interest rate that a lender can levy on a secured loan
- 4The maximum loan amount that can be sanctioned against the verified value of the collateral✓
Correct answer
The maximum loan amount that can be sanctioned against the verified value of the collateral
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