Despite being below their best domestically and failing to convince against Juve and Bayern Munich in the last two rounds, Zinedine Zidane's side have a chance to become the first team since Ajax and Bayern in the 1970s to win the competition three times in succession.
Lovren, though, is not intimidated by that impressive recent pedigree, Liverpool having blazed a trail to the showdown at NSC Olimpiyskiy Stadium courtesy of impressive triumphs over Premier League champions Manchester City and Roma.
"They [Madrid] are quite confident but we don't care for that, we are focused on our job," he said.
"Why should we fear them? They should fear us."
According to Lovren, the arrival of manager Jurgen Klopp at Anfield in October 2015 has had a transformational impact at Liverpool, on and off the field.
"He changed many things in the club," Lovren said.
"Not just the players but things around the club, people, he has changed the mentality, how we think. Everything is more positive now.
"Even when we sometimes don't play good, he always finds something good and there is not negativity. He deserves this.
"It is not accidental that he already reached the final of the Champions League in 2013 with Borussia Dortmund.
"He has given the club pride back. Everyone feels that, everyone lives that.
"Everyone should be proud that we have a manager like him."