Home loan will be cheaper, RBI took this big decision

The Reserve Bank of India (RBI) has changed the rules for new home loans. Their purpose is to promote real estate sector. The central bank has decided to rationalize the risk weight on home loans with only LTV ratio. These rules will apply to all new housing loans to be held by 31 March 2022. Home loan is expected to be cheaper with this step.

RBI Governor Shaktikanta Das said, “Considering the role of real estate sector in job creation and economic activities, it has been decided to rationalize risk vests and link them only with LTV ratio. Sanction by 31 March 2020 These rules will apply for all new housing loans. “