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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
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