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Housing Finance Prudential Framework

Reserve Bank guidelines on Loan-to-Value (LTV) ratios, risk weights, affordable housing benchmarks, and mortgage consumer protection.

Statutory Loan-to-Value (LTV) Ratios & Risk Weights

Prudential limits to ensure systemic stability in residential mortgages

Category of Housing Loan	Maximum Permissible LTV	Standard Risk Weight	Minimum Borrower Margin
Up to ₹30 Lakhs	Up to 90%	35%	10% of Property Cost
Above ₹30 Lakhs up to ₹75 Lakhs	Up to 80%	35% - 50%	20% of Property Cost
Above ₹75 Lakhs	Up to 75%	50%	25% of Property Cost

Note: In terms of Reserve Bank directives, stamp duty, registration charges and other documentation fees shall not be included in the cost of housing property for calculating LTV ratio where property value exceeds ₹10 lakhs.

Priority Sector Housing Classification & Support

Affordable housing criteria eligible under Priority Sector Lending

Metropolitan Centers (Pop > 10 Lakhs)

Housing loans up to ₹35 Lakhs in metropolitan centers (with dwelling unit cost not exceeding ₹45 Lakhs) qualify as Priority Sector Lending.

Other Centers & Rural

Housing loans up to ₹25 Lakhs in non-metropolitan centers (with dwelling unit cost not exceeding ₹30 Lakhs) qualify for priority priority credit quotas.

Mortgage Consumer Protection & Operating Rules

Prohibition of Foreclosure / Prepayment Charges:Banks and housing finance companies (HFCs) are strictly prohibited from charging any pre-payment or foreclosure fees on floating-rate housing loans sanctioned to individual borrowers.

Immediate Return of Original Title Deeds:Lenders must release all original property documents and remove charges registered with CERSAI within 30 days of full loan repayment. Failure attracts compensation to the borrower.

Transparent Reset of Floating Interest Rates:Whenever the external benchmark increases, lenders must offer borrowers the choice to either switch to fixed rate, lengthen tenor, or increase EMI, with clear notice.

Housing Loan Eligibility Calculator

Property Valuation:₹45.0 Lakhs

Tenure (Years):20 Years

Floating Benchmark:8.4%

Permitted LTV Cap:80%

Max Permissible Loan:₹36,00,000

Estimated Monthly EMI:₹31,014

Apply for Pre-Approval via Net Banking →

Mortgage Delay Redressal

If your bank fails to return original property deeds within 30 days of closure, you are entitled to statutory compensation of ₹5,000 per day of delay under Reserve Bank directions.