Tally for Practicing CAs Gold Edition (Multi User) Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
Latest Circulars »
  RBI Auction of Government of India Dated Securities
 Targeted Long Term Repo Operations (TLTROs)
 Review of regulatory framework for Housing Finance Companies (HFCs)
 Minutes of the Monetary Policy Committee Meeting October 7 to 9, 2020
 585th Meeting of Central Board of the Reserve Bank of India
 Digital Payment Transactions Streamlining QR Code infrastructure
 Framework for Recognition of a Self-Regulatory Organisation for Payment System Operators
 Option of repaying the funds availed under Targeted Long-Term Repo Operations (TLTRO and TLTRO 2.0) before maturity
 Reserve Bank announces On Tap Targeted Long-Term Repo Operations
 Notification No. 83/2020 Ministry of Finance (Department of Revenue)
  Auction of Government of India Dated Securities

RBI- Individual Housing Loans: Rationalisation of Risk-Weights and Loan to Value (LTV) Ratios
June, 08th 2017

RBI/2016-17/317
DBR.BP.BC.No.72/08.12.015/2016-17

June 7, 2017

All Commercial Banks
(Excluding Regional Rural Banks and Local Area Banks)

Madam/Dear Sir,

Individual Housing Loans: Rationalisation of Risk-Weights and Loan to Value (LTV) Ratios

Please refer to the Second Bi-monthly Monetary Policy Statement for 2017-18, announced today.

2. As a countercyclical measure, the LTV ratios, risk weights and standard asset provisioning rate for individual housing loans sanctioned on or after the date of this circular shall be as under:

Outstanding loan LTV ratio (%) Risk Weight (%) Standard Asset Provision (%)
Up to Rs.30 lakh < 80 35 0.25
> 80 and < 90 50
Above Rs.30 lakh and up to Rs.75 lakh < 80 35
Above Rs.75 lakh < 75 50

3. The LTV ratios, Risk Weights and Standard Asset Provision set out in the circular DBR.BP.BC.No.44/08.12.015/2015-16 dated October 8, 2015, on the captioned subject, shall continue to apply to loans sanctioned up to June 6, 2017.

4. All other instructions referred to in the above mentioned circular remain unchanged.

Yours faithfully,

(S.S. Barik)
Chief General Manager in-Charge

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting