RBI notifies reduce in risk weightage for home loans

May 3, 2007:The Reserve Bank of India reaffirmed its decision to reduce the risk weight on housing loans upto Rs 20 lakh to 50 percent from the earlier 75 per cent.

The reduced risk weights will be reviewed after one year. The Central Bank, announced its decision on risk weight reduction which has been reaffirmed through the official notification published on its websites today and has been addressed to all commercial banks excluding regional rural Banks.

According to senior banks, the move from the central bank is expected to boost up the house loan segment by making it feasible to the average citizens aspiring for home loans.

Source: hindustantimes