The Reserve Bank of India has tightened home loan norms by asking banks not to lend more than 80 per cent of the value of the house to borrowers. This means that new borrowers will have to shell out at least 20 per cent of the total value of the house from their pockets.
The central bank has also increased the risk weight for housing loans above Rs. 75 lakh to 125 %. It implies that loans above Rs. 75 lakh will now become more expensive.
The RBI has also made it harder for banks to offer teaser rates where the home loan rates is fixed for few years and later it turns into a floating rate
In a move to curb inflation, the central bank on 2 Nov hiked the repo and reverse repo rates by 0.25 %, making loans costlier if banks decide to pass on the rate hike.
Accordingly, the short term lending rate or (repo rate) stands at 6.25 % and the borrowing rate (reverse repo) at 5.25 %.
The RBI has, however, left the cash reserve ratio or bank rate, which is the amount of cash that banks have to park with the central bank to maintain prudential norms, unchanged at 6 %.
You might find these relevant:
- How to transfer Home loan from one bank to another bank?
- Loan for Buying a Plot, Documents details, Project Cost
- Happinest Housing Project in Boisar by Mahindra Lifespace
- Special Offers on Credit Cards and Loans In this festive season
- RBI keeps key rates unchanged in monetary policy: 30 September 2014
- Latest News – DDA May Extend Last Date for Submission Form
- Festival Offers, Discounts on Maruti Cars 2014
- New Circles Rates in Delhi 2014 List
- Snapdeal Diwali offer: Get Extra upto Rs. 3000 off on Electronics and Gadgets
- Benefits of Adding Co-Applicant in Home Loans