Giving a boost to affordable housing, the RBI Thursday eased the norms for home loans for up to Rs 10 lakh by allowing banks to include stamp duty and registration charges to the cost of a unit.
These charges form around 15 percent of the cost of the house and place a burden on borrowers.
“With a view to encourage availability of affordable housing to such borrowers, it has been decided that in cases where the cost of the house does not exceed Rs 10 lakh, banks may add stamp duty, registration and other documentation charges to the cost of the unit for calculating LTV (loan to value) ratio,” RBI said in a notification.
As per the current practice, banks do not include stamp duty, registration and other documentation charges in the cost of housing property.
“It has been brought to our notice that these amounts form around 15 percent of the cost of the house and place a burden on the borrowers from economically weaker sections (EWS) and low income groups (LIG),” RBI said while easing the norms.
The RBI also said that in cases of projects sponsored by government, statutory authorities, banks may disburse the loans as per the payment stages prescribed by such authorities, even where payments sought from house buyers are not linked to the stages of construction.
Some banks had made representations that they are not able to extend home loans to the allottees in the project developed by government bodies as the payment schedule prescribed by such authorities are not linked to the stages of construction.