RBI changes rules for loans to boost low cost housing
Q. RBI has stipulated that banks can provide up to ___ percent for properties costing INR 30 lakh up from INR 20 lakh.- Published on 10 Oct 15a. 70
b. 80
c. 90
d. 40
ANSWER: 90
To benefit buyers of low cost housing, RBI on 8th October 2015 raised the amount banks can advance for property purchase and lowered the risk weightage of various categories of home loans. This will attract customers to low cost housing sphere. Banks will also gain surplus funds for affordable housing loans as they have to set aside less capital for the segment. Banks can now provide home loans up to 90% for properties that cost INR 30 lakh or less from the earlier INR 20 lakh. LTV has been raised to 80% for properties between INR 30 lakh and 75 lakh and 75% for those above INR 75 lakh.
