90 percent of loan- properties upto 30 lakh - Fusion - WeRIndia

Now 90 percent of loan for properties up to 30 lakh

Now 90 percent of loan for properties up to 30 lakh

People looking for home loans can be happy now as bank rules now permit provision of home loans up to 90 per cent for property price for properties which are under Rs.30 lakh. Home loan portfolio of banks, especially public sector banks was under pressure because of high interest rates.

The recent decision was announced by The Reserve Bank of India (RBI) through a circular on Thursday.

They stated that for individual housing loans which are under Rs30 lakh, the Loan to Value (LTV) ratio is now up to 90 per cent.

They further said that in case of properties above Rs.30 lakh and up to Rs.75 lakh, the LTV is up to 80 per cent. For properties above Rs75 lakh, the LTV ratio comes is at 75 per cent.


Recently many major banks have reduced interest rate on home loans which combined with this move helps many home loan seekers. A senior official of State Bank of India stated that the decision was welcomed by many banks as it improves the banks’ loan portfolio, especially home loans in retail loan segment.

It is expected that many big players including housing finance companies will get benefit from this move.

Before this decision by RBI, this facility was available for loans up to Rs 20 lakh. Home loan seekers who are looking to buy properties in the range of Rs20-30 lakh will be helped a lot especially if their financial situation is weak.

The senior official added that all banks need to be a bit cautious when giving loans. He also stated that real estate companies should revise their prices in order to let banks get a leg-up to disburse the loan to customers. It is expected that there will be a 10-15 per cent increase in credit off take in home loan for almost all banks.

Image Reference: IBNLive

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