LSR refers to the Loan Security Ratio, which serves as an instrument for banks to gauge the inherent risk associated with a loan. The LSR calculates the ratio between the loan amount and the value of the collateral, expressed as a percentage. A higher LSR signifies a greater risk for the lending institution. The secondary meaning of LSR refers to the Legal Scrutiny Report. This report is generated by a lawyer employed by the bank to examine the legal aspects of property-related documents submitted with a loan application. The report's purpose is to verify the legitimacy of land titles, land-use permissions, zoning regulations, and any potential legal disputes attached to the property offered as security for the loan.
