The Reserve Bank on Thursday said, that if 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.
It has been brought to our notice that these amounts from around 15% of the cost of the house and place a burden on the borrowers from economically weaker sections (EWS) and low income groups (LIG), RBI said.
On a review, 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, it added.