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

Posted Date : 07-Jun-2017 , 05:01:05 pm | Posted By CASANSAAR print

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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
Up to Rs.30 lakh	> 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.

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