RBI Extended The Rationalized Home Loan Standards Till March 2023
RBI Extended The Rationalized Home Loan Standards Till March 2023
The RBI prolonged the rationalized home loan norms till March 31, 2023, to enhance the credit flow of individual housing loans.
In October 2020, the RBI rationalized the risk weights by linking them with Loan to Value (LTV) ratios for all new housing loans, only up to March 31, 2022.
Das said "By extending the applicability of LTV ratio till March 31, 2023, which will facilitate higher credit flow for individual housing loans, the RBI has recognized the importance of the housing sector and its multiplier effects on the economy.*
The requirement of standard asset provision of 0.25% will also pertain to such loans.
Agarwala said sales numbers show that India's real estate sector is fluently stepping towards more smooth recovery and assistance policies like these will help furthermore
V Swaminathan, the CEO of Andromeda and Apnapaisa said the expansion of the rationalized risk weightage norms for individual home loans will stimulate participation in this sector.
Housing sales have heightened quickly during 2021 after a major obstacle in 2020 when demand dropped by nearly 50 percent due to the Covid pandemic.
Historical low-interest rate is similarly one of the crucial reasons steering the sale of residential properties.
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