CLR Note: The Reserve Bank of India has issued a circular no.44/08.12.015/2015-16 dated 8th October, 2015 where it has been decided to fix the Loan to Value (LTV) ratios and risk weights for individual housing loans.Please read below the full details of the slabs and their risk weights along with the LTV ratios.
RBI/2015-16/200
DBR.BP.BC.No. 44/08.12.015/2015-16
October 8, 2015
All Scheduled Commercial Banks
Dear Sir,
Individual Housing Loans: Rationalisation of Risk-Weights and LTV Ratios
Please refer to paragraph 4 of the circular DBOD.BP.BC.No.104/08.12.015/2012-13 dated June 21, 2013 on ˜Housing Sector: New Sub-sector CRE (Residential Housing) within CRE & Rationalisation of Provisioning, Risk-weight and LTV Ratios™, wherein the LTV ratios and risk weights for individual housing loans were prescribed. On a review, it has been decided to fix the Loan to Value (LTV) ratios and risk weights for individual housing loans as under:
| Category of loan | LTV ratio (%) | Risk Weight (%) |
| Upto ‚¹ 30 lakh | % 80 | 35 |
| > 80 and % 90 | 50 | |
| Above ‚¹ 30 lakh and upto ‚¹ 75 lakh | % 75 | 35 |
| > 75 and % 80 | 50 | |
| Above ‚¹ 75 lakh | % 75 | 75 |
All other instructions contained in the circular mentioned above will remain unchanged.
Yours faithfully,
(Sudarshan Sen)
Principal Chief General Manager
