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Thursday, October 8, 2015

Banks can sanction 90% loan for property upto Rs 30 lac: RBI

Banks can now provide home loans up to 90 per cent for properties that cost Rs. 30 lakh or below, RBI said today.

Earlier, the facility was available only in cases where the cost was up to Rs. 20 lakh.

This will benefit those home seekers who plan to buy properties in the range of Rs. 20-30 lakh.

The RBI’s decision comes in the wake of all major banks reducing interest rate on home loans.

The Reserve Bank, through a circular, said that in the case of ‘individual housing loans’ falling under the loan category of up to Rs. 30 lakh, the LTV (Loan to Value) ratio is now up to 90 per cent.

For properties above Rs. 30 lakh and up to Rs. 75 lakh, the LTV is up to 80 per cent and those above Rs. 75 lakh, the ratio comes in at 75 per cent.

It has also modified the provisioning or risk-weights norms for home loans.

Source : Thehindubusinessline


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