Apex bank’s new home loan norms moistener

By Accommodation Times (www.accommodationtimes.com)

Buying a home in India is gradually going difficult in the current scenario. As Reserve Bank of India (RBI) new norms is dampener for home loan seekers.
According to the new norms home loan borrowers will have to fund about 30% of the total cost of a house from their own resources because the Reserve Bank has just mandated that banks should exclude stamp duty and registration charges while calculating the property value.
“As we have been saying the rate hikes coming very frequently will prove to be counterproductive since the move will have a cost-push impact rather than proving to be an inflation control measure” Lalit Kumar Jain said.
The rates of interest are bound to zoom and this will further weaken the sluggish demand in real estate sector, he pointed out.
He has called for immediate steps for initiating reforms in real estate like transparency, quick clearances, single window system for clearing building permissions and rationalization of land and even registration policy for which CREDAI has been campaigning.
On other hand, earlier banks were used to include in the property value and anticipated home loan borrowers to bring 20% of the total value as margin money. The ratio of the loan amount to the value of the property, called loan to value, cannot exceed 80%.