India tightens loan-to-value ratios


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

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