RBI
RBI has reviewed the all-in-cost ceiling for External Commercial Borrowing (ECB) Policy and has decided that the all-in-cost ceiling as specified hereinafter shall continue to be applicable till March 31, 2015 and is subject to review thereafter. All other aspects of ECB policy remain unchanged :
| Average Maturity Period | All-in-cost over 6 month LIBOR* |
| Three years and up to five years | 350 bps |
| More than five years | 500 bps |
| * for the respective currency of borrowing or applicable benchmark | |
RBI
RBI has reviewed the Instructions for Housing Loans by Commercial Banks – Loan to Value (LTV) Ratio’ whereby the cost of stamp duty, registration and other documentation charges are not included in the cost of housing property so that the effectiveness of LTV ratio is not diluted. Accordingly, it has been decided that in cases where the cost of the house/dwelling unit does not exceed Rs.10 lakh, banks may add stamp duty, registration and other documentation charges to the cost of the house/dwelling unit for the purpose of calculating LTV ratio. Further, the banks are advised that in cases of projects sponsored by Government / Statutory Authorities, they 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, provided such authorities have no past history of non-completion of projects.
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