Business Standard

75% Risk Weight Likely For High Housing Loans

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Parul GuptaSidhartha BUSINESS STANDARD

Concerned about banks and housing finance companies offering loans in excess of the value of a house, the National Housing Bank (NHB) has initiated dialogues with the Reserve Bank of India (RBI) to deter lenders from lending beyond 75-80 per cent of the value of a property.

The housing finance regulator is planning to assign higher risk weightage to loans beyond 75-80 per cent of the value of a property.

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First Published: Jul 01 2003 | 12:00 AM IST

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