When you take out a loan at a bank, they often ask for collateral, like a car or house. Loan-to-value (LTV) is a fancy way of saying how much they're lending you compared to the value of the collateral. For example, if your car is worth $10,000 and they lend you $7,000, the LTV would be 70% ($7,000 divided by $10,000). A higher LTV means a riskier loan for the bank because if you can't repay, they might not get their money back by selling the collateral.
