CIRCULAR DBR.BP.BC.NO.44/08.12.015/2015-16, DATED 8-10-2015

INDIVIDUAL HOUSING LOANS : RATIONALISATION OF RISK WEIGHTS AND LTV RATIOS

CIRCULAR DBR.BP.BC.NO.44/08.12.015/2015-16DATED 8-10-2015

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 ≤ 75 35
upto Rs. 75 lakh > 75 and ≤ 80 50
Above Rs. 75 lakh ≤ 75 75

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

Leave a comment