RBI has recently announced a revised cap for those filling applications of home loans up to 90 percent. The cap has gone up to Rs 30 lakh from the earlier Rs 20 lakh. Shubhkamna Developers believes that the announcement is a big boost and has brought joy among prospective buyers as banks can now provide home loans up to 90 per cent for properties that cost Rs 30 lakh or below.
Shubhkamna Developers is looking forward to a boost in sales as this announcement has come hand in hand with all major banks reducing interest rate on home loans. The earlier cap for a 90 percent loan facility was up to only in cases where the cost was up to Rs 20 lakh.
Shubhkamna Developers (or Shubhkamna Advert) said that the move is going to boost buyers who are planning to buy properties in the range of Rs 20-30 lakh.
The Reserve Bank, through a circular, said that in the case of ‘individual housing loans’ falling under the loan category of up to Rs 30 lakh, the LTV (Loan to Value) ratio is now up to 90 per cent. For properties above Rs 30 lakh and up to Rs 75 lakh, the LTV is up to 80 per cent and those above Rs 75 lakh, the ratio comes in at 75 per cent. Shubhkamna Advert believes that this has also modified the provisioning or risk-weights norms for home loans.
Welcoming the RBI’s decision, realtors’ apex body CREDAI President Getamber Anand said this will boost sentiment of the real estate sector, which is facing a huge slowdown for the past 2-3 years. Housing sales would rise in tier II and III cities where apartments are available at below Rs 30 lakh, he said.
Anand demanded that the limit be increased to Rs 40 lakh, from Rs 30 lakh, for metros.
Record say that home sales fell to 1.75 lakh units in primary markets of seven major cities in 2014 compared with nearly 2 lakh units in the previous year. This is another major boost amidst lowering interest rates, believes Shubhkamna Developers.
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