Banking · Retail Lending
A prospective borrower intends to apply for a housing loan to purchase a ready-to-move-in residential apartment valued at 85 lakh rupees. The borrower is 35 years old and has a stable monthly income. In the context of the master directions and banking guidelines for housing loans, which of the following statements correctly represents the regulatory and operational criteria for sanctioning this housing loan?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Banks are prohibited from granting loans for houses where the borrower is above the age of 50 at the time of the loan application.
- 2The bank can include the cost of registration and stamp duty in the property value for LTV calculation regardless of the loan amount.
- 3The LTV ratio for housing loans above 75 lakh rupees is capped at a maximum of 75 percent, and the property must have a clear marketable title.✓
- 4For a property valued at 85 lakh rupees, the maximum LTV ratio permitted by the RBI is 90 percent, and the maximum repayment period is 40 years.
Correct answer
The LTV ratio for housing loans above 75 lakh rupees is capped at a maximum of 75 percent, and the property must have a clear marketable title.
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