By Accommodation Times News Service
Housing Finance companies will be getting easier norms in a week or so to boost the housing market. The National Housing Bank said it would follow Reserve Bank of India’s decision to reduce risk weight on banks home loan over 20lakh which will impact bit soft on housing loans rates. We will issue a notice in a week said Chairman and MD RV Verma.
RBI last week lowered the risk weight for loans to 75% from 125% earlier giving a fresh breathe to the banks. NHB is likely to lower the risk weight on loans for property developers to build residential housing projects within the commercial real estate category to 75% from 100% earlier.
RBI has marked out a new sub-category for residential housing within commercial real estate. The new one exhibits lesser risks and volatility and thus will attract a lower 75% risk weight provided that the commercial area does not exceed 10% of the total real estate.