RBI REVISES NORMS FOR HOME BUYERS!!!

RBI revises the norm for (Pure Residential) Home buyers can now get 90% loan against a property Up to Rs. 20 lakhs, 80%, Above Rs. 20 lakhs and up to Rs. 75 lakhs and 75% above 75 Lakhs respectively.

The reason for the change is that the residential housing projects exhibited lesser risk and volatility than the broader commercial realty sector. As the risk weight is lower, the banks will now charge lower interest rates for such loans enabling the builders to borrow at lower rates and bigger amounts for such projects.