Friday, October 9, 2015

Individual Housing Loans: Rationalisation of Risk-Weights and LTV Ratios

It has been decided to fix the Loan to Value (LTV) ratios and risk weights for individual Housing Loans as under:
Category of loan
LTV ratio (%)
Risk Weight (%)
Upto ₹ 30 lakh
≤ 80
35
> 80 and ≤ 90
50
Above ₹ 30 lakh and upto ₹ 75 lakh
≤ 75
35
> 75 and ≤ 80
50
Above ₹ 75 lakh
≤ 75
75

Based on RBI Circular dt 08/10/15. Please visit www.rbi.org.in for any further clarification if required…..          Poppy