Housing Loan

The Reserve Bank of India (RBI) has decided to relax the rules for Residential Housing (RH) projects by lowering the standard asset provisioning requirement and risk weight for loans given to those projects. The bank has carved out a sub-section for residential housing projects from the Commercial Real Estate(CRE) category. The new section -CRE-RH will attract lower risk weight and provisioning as compared with CRE loans, ensuring more credit flow to the housing construction sector.
“CRE-RH segment will attract a lower risk weight of 75% and lower standard asset provisioning of 0.75% as against 100% and 1.00%, respectively, for the CRE segment,” said the central bank in a notification.