Question
As per RBI guidelines, for the purpose of calculation of
LTV in case of housing loans, stamp duty, registration and other documentation charges can be added to the cost of the house/dwelling unit if the cost of the house/dwelling units does not exceed _________Solution
In order to have uniformity in the practices adopted for deciding the value of the house property while sanctioning housing loans, banks should not include stamp duty, registration and other documentation charges in the cost of the housing property they finance so that the effectiveness of LTV norms is not diluted. (c) However, in cases where the cost of the house/dwelling units does not exceed Rs.10 lakh, bank may add stamp duty, registration and other documentation charges to the cost of the house/dwelling unit for the purpose of calculating LTV ratio.
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