What LTV Ratio Do Lenders Accept for GPU Collateral? (2026 Guide)
Lenders typically accept 50-65% LTV for GPU collateral at origination, with conservative banks at 50-55% and aggressive private credit at 60-70%. LTV caps decline over the loan term to account for 35-40% year 1 depreciation.
- Conservative (Banks): 50-55% LTV at origination
- Moderate (Private Credit): 55-65% LTV at origination
- Aggressive (ABL): 60-70% LTV at origination
- Valuation Haircut: 15-30% from market price
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Enter your GPU collateral details below. See how depreciation affects your loan-to-value ratio over time.
GPU Collateral
Valuation
Loan Details
Collateral value = Quantity × Purchase Price. Current value adjusted for depreciation.
How Do You Calculate LTV for GPU Financing?
LTV = Loan Amount / Collateral Value
Where Collateral Value = Market Price - Haircuts
Step-by-Step Calculation
- Start with current market price (not MSRP)
- Apply depreciation for loan term
- Subtract liquidation haircut (10-15%)
- Subtract condition/warranty adjustments
- Divide loan amount by adjusted value
Example: 100 H100 SXM5 Portfolio
- Market Value (100 × $35K)$3.5M
- Depreciation Haircut (15%)-$525K
- Liquidation Haircut (10%)-$350K
- Adjusted Collateral Value$2.625M
- Loan Amount (60% LTV)$1.575M
GPU LTV Requirements by Lender Type
| Lender Type | Origination LTV | Year 2 LTV Cap | Haircut Applied | Additional Requirements |
|---|---|---|---|---|
| Commercial Banks | 50-55% | 40-45% | 25-30% | Insurance, appraisals, parent guarantee |
| Private Credit Funds | 55-65% | 45-55% | 20-25% | DSCR covenant, cash sweep, reserves |
| Asset-Based Lenders | 60-70% | 50-60% | 15-20% | Monthly reporting, field audits |
| Equipment Finance | 65-75% | 55-65% | 15-20% | Vendor relationships, warranties |
| Specialty GPU Lenders | 70-80% | 60-70% | 10-15% | Revenue-based, utilization covenants |
Source: Analysis of 40+ GPU financing transactions (2024-2026)
How Does GPU Depreciation Affect LTV Covenants?
GPU depreciation of 35-40% in year 1 means LTV naturally increases unless loan principal amortizes faster than collateral depreciates. Lenders structure declining LTV caps to maintain coverage:
| Period | Collateral Value | Loan Balance | Actual LTV | LTV Cap | Status |
|---|---|---|---|---|---|
| Origination | $3.5M | $2.1M | 60% | 65% | ✓ Compliant |
| Year 1 | $2.3M (-35%) | $1.8M | 78% | 60% | ✗ Breach |
| Year 1 (w/ sweep) | $2.3M (-35%) | $1.38M (swept) | 60% | 60% | ✓ Cured |
| Year 2 | $1.6M (-55% cum.) | $0.88M | 55% | 55% | ✓ Compliant |
Key Insight
Without aggressive amortization or cash sweeps, GPU loans breach LTV covenants within 12 months. Structure loans with 20-30% annual principal paydown or mandatory cash sweeps triggered at 75% LTV to maintain compliance.
What Haircuts Do Lenders Apply to GPU Valuations?
Liquidation Haircut
10-15%
Covers broker fees, shipping, testing, and time-to-sale discount in forced liquidation scenario.
Obsolescence Reserve
5-10%
Accounts for risk of new GPU generation (B100/B200) accelerating depreciation unexpectedly.
Condition Adjustment
0-10%
Based on physical condition, warranty status, and utilization history. New with warranty = 0%.
Our Methodology
This LTV analysis is based on:
- Deal data: 40+ GPU financing transactions from banks, private credit, and ABL lenders
- Valuation data: GPU Lease Rate Index (GLRI) market prices updated weekly
- Depreciation curves: 500+ secondary market transactions (see depreciation calculator)
- Lender interviews: Credit officers at 15+ GPU financing institutions
- Last updated: January 8, 2026
Limitations: LTV requirements vary by borrower credit quality, sponsor support, and market conditions. Consult your lender for specific structuring guidance.
Frequently Asked Questions
What is a safe LTV for H100 GPU loans?
A safe LTV for H100 GPU loans is 50-55% at origination, stepping down to 40-45% by year 2. This provides cushion for rapid depreciation (35-40% year 1) and potential technology obsolescence when next-gen GPUs launch.
Can GPUs be used as sole collateral for loans?
Yes, GPUs can serve as sole collateral for equipment financing up to $50-100M. Larger facilities typically require additional collateral (real estate, contracts, parent guarantees) due to concentration risk and depreciation concerns.
How do lenders verify GPU collateral values?
Lenders verify GPU values through: (1) third-party appraisals (annual), (2) secondary market price tracking, (3) serial number verification, (4) physical audits, and (5) insurance certificates. Our GLRI index provides real-time market data for monitoring.
How does GPU depreciation affect LTV covenants?
GPU depreciation of 35-40% in year 1 means LTV naturally increases unless loan principal amortizes faster. Lenders structure declining LTV caps (e.g., 60% → 55% → 50%) or require cash sweeps when LTV exceeds thresholds.
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