Now you can borrow housing loan up to 90% of property value if loan amount is up to Rs.30 Lacks

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RBI/2015-16/200
DBR.BP.BC.No. 44/08.12.015/2015-16

October 8, 2015

All Scheduled Commercial Banks

Dear Sir,

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

Please refer to paragraph 4 of the circular DBOD.BP.BC.No.104/08.12.015/2012-13 dated June 21, 2013 on ‘Housing Sector: New Sub-sector CRE (Residential Housing) within CRE & Rationalisation of Provisioning, Risk-weight and LTV Ratios’, wherein the LTV ratios and risk weights for individual housing loans were prescribed. On a review, 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 Rs.30 lakh < 80 35
> 80 and > 90 50
Above Rs. 30 lakh and upto Rs. 75 lakh < 75 35
> 75 and  < 80 50
Above Rs.75 lakh > 75 75

All other instructions contained in the circular mentioned above will remain unchanged.

Yours faithfully,

(Sudarshan Sen)
Principal Chief General Manager

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