Reserve Bank of India (RBI) has relaxed the norms for housing loans up to Rs.10 lakhs by banks.
According to the RBI’s statement, “with a perspective to encourage accessibility of affordable housing to such borrowers, it has been decided that in situations where the expense of the house does not surpass Rs.10 lakh, banks may include stamp duty, registration and other documentation charges to the expense of the house for the purpose of calculating Loan to Value ( LTV) proportion.”
“It has been brought to our notice that these sums structure around 15 per cent of the expense of the house and place a burden on the borrowers from economically weaker segments and low salary groups.” the RBI said.
As the RBI statement indicates, the unwinding in LTV standards was intended to encourage accessibility of affordable housing to such borrower.
