India tightens loan-to-value ratios

rbi2

The Reserve Bank of India (RBI) on Tuesday unveiled prudential rules to curb excessive leveraging in the financial sector, as part of its Second Quarter Review of Monetary Policy.

The central bank has imposed an 80% ceiling on loan-to-value (LTV) ratios pertaining to banks' housing loan exposures. There is no LTV ceiling imposed at present.

The central bank also raised the risk weight attached to housing loans, announcing that the weight would be set at 125% for loans of more than Rs75 lakhs ($1

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: