Reserve bank of India (RBI) has introduced new guidelines for home loans. The central bank has made it tougher for property loan valuing more than 75 lac.
The RBI has said that the banks can provide loan only 80 percent of the cost of property, rest 20 percent has to be necessarily arranged by the borrower. These new guidelines are introduced by the bank, considering the excessive flow of money from the banks in real estate sector.
According to a notification issued by RBI "In order to prevent excessive leveraging, the LTV (Loan to Value) ratio in respect of housing loan hereafter should not exceed 80 per cent," however the central bank said that the banks can provide upto 90 pecent loan to small housing loan upto 20 lacs.
Reacting to the revised policy, some banks like ICICI and HDFC have already withdrawn their teaser rate scheme while SBI will follow the renewed guidelines from next month.
