RBI’s move to rationalize home loan risk weightage to support higher lending

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 RBI’s move to rationalize home loan risk weightage to support higher lending

Until now, the risk was linked to both size of the home loan and loan to value and the move to link it to only the latter is likely to help lenders on the capital adequacy front enabling them to provide more loans.

The Reserve Bank of India’s decision to rationalize the risk weights on home loans and link them to Loan-to-Value (LTV) ratio is expected to bolster the real estate sector with higher lending, property developers said.


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