A) 5 per cent
B) 15 per cent
C) 25 per cent
D) 35 per cent
E) 45 per cent
Correct Answer: D
Solution :
To encourage banks to seek more collateral for giving home loans, the RBI on 8 October 2015 prescribed lower risk, weights where the borrower brings higher contribution. This is expected to free up capital for banks to give more loans. This move comes at a time when interest rates are coming down and competition to push home loans is increasing. Further, borrowers could have a tendency to borrow more.? The central bank has rejigged the slabs in the individual loan category up to Rs. 30 lakh (against Rs. 20 lakh earlier); above Rs. 30 lakh and up to Rs. 75 lakh (Rs. 20 lakh and up to Rs. 75 lakh); and above 4 Rs. 75 lakh (unchanged). |
? Under the lowest slab (up to Rs. 30 lakh), the central bank has pegged the risk weight at 35 per cent for a loan-to-value (the amount of loan given as percentage of the value of the house) of less than or equal to 80 per cent. |
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