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 ₹ 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 | All other instructions contained in the circular mentioned above will remain unchanged. Yours faithfully, (Sudarshan Sen)
Principal Chief General Manager | |