Home loan rates for less risky properties are lower
According to the Reserve Bank of India (RBI), the value of the security of a real estate property does not cover the outstanding loan amount, which leads to larger non-performing assets (NPAs).
It is tough to get a loan against the NPAs. As the risk weightage for any loan exceeding the Loan To Value of 75% is at least 100% and loans exceeding Rs. 75 lakh require a risk weightage of 125%.
Most of the real estate investors are looking for higher return and invest into the under construction projects and once the project is ready, they sell it to the actual buyers.
It is presumed that a ready to occupy property contains less risk factor, and availing housing loan against those properties are easier.
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Apartment for rent is cheaper than EMI in Mumbai
RBI further puts new bracket in home loans
Source : Live mint
Housing loan, Non-performing assets, RBI, ready to occupy property, real estate investors, Real Estate properties in India, Real Estate Property, Reserve Bank of India, under construction projects
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