RBI Circular - Individual Housing Loans: Rationalisation of Risk-Weights and LTV Ratios
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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
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