INDIVIDUAL HOUSING LOANS : RATIONALISATION OF RISK WEIGHTS AND LTV RATIOS
CIRCULAR DBR.BP.BC.NO.44/08.12.015/2015-16, DATED 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.