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# What Is Loan-to-Value Ratio in Aircraft Leasing?
- URL: https://www.acmiworld.com/what-is-loan-to-value-ratio-in-aviation/
- Published: 2026-09-16T12:41:17.000Z
- Updated: 2026-09-16T12:41:17.000Z
- Description: Loan-to-Value Ratio defined for aviation professionals, with its operational or commercial use, document context and related terminology.
- Author: ACMI World
- Tags: Aviation Glossary, Aircraft Leasing & Finance, #Import 2026-09-14 15:41

## Meaning in Professional Aviation

Loan-to-value ratio, or LTV, compares outstanding aircraft debt with the lender's accepted value of the aircraft or collateral package.

Aviation Glossary

**Term:** Loan-to-Value Ratio

**Category:** Aircraft Leasing & Finance

## Where the Term Appears

Loan-to-Value Ratio can appear in aircraft leases, loan agreements, security documents, appraisals, insurance provisions or closing deliverables depending on the transaction. The exact legal effect comes from the executed documents, governing law and the role of each party.

## How It Affects the Transaction

LTV changes over time as debt amortizes and aircraft values move, so lenders may require periodic appraisals or cure rights if the ratio exceeds an agreed threshold.

## What to Review

Read the definition together with payment mechanics, default provisions, insurance, maintenance, return conditions, security and enforcement rights. A familiar label can have a different economic effect when the drafting or calculation method changes.

## Related Aviation Topics

Related ACMI World coverage includes [key terms in aircraft leasing contracts](https://www.acmiworld.com/key-terms-in-aircraft-leasing-contracts/), [business jet leasing](https://www.acmiworld.com/business-jet-leasing/), [aircraft acquisition financing](https://www.acmiworld.com/financing-options-for-aircraft-acquisitions/), [cross-border jet lease terms](https://www.acmiworld.com/cross-border-jet-lease-terms-that-matter/) and [aircraft valuation and LTV](https://www.acmiworld.com/aircraft-valuation-adjustments-affect-ltv/).

LTV changes over time as debt amortizes and aircraft values move, so lenders may require periodic appraisals or cure rights if the ratio exceeds an agreed threshold.

Frequently Asked Questions

## Loan-to-Value Ratio FAQ

What does Loan-to-Value Ratio mean in aviation?

Loan-to-value ratio, or LTV, compares outstanding aircraft debt with the lender's accepted value of the aircraft or collateral package.

Why does Loan-to-Value Ratio matter?

LTV changes over time as debt amortizes and aircraft values move, so lenders may require periodic appraisals or cure rights if the ratio exceeds an agreed threshold.

Where would an aviation professional encounter Loan-to-Value Ratio?

It is commonly encountered in aircraft leasing & finance documents, procedures, calculations or operating discussions where the underlying technical or commercial issue is relevant.

Does the term have the same meaning in every aircraft finance document?

No. Market terminology is useful shorthand, but the executed agreement controls. Defined terms, calculation methods, governing law and transaction structure can change the result.