Banks more risk-tolerant in housing loans but affordability worsened, shows RBI survey

Mumbai (Maharashtra), July 12 -- : A recent survey by the Reserve Bank of India (RBI) shows that banks are getting more risk-tolerant in housing loans but affordability across the country has worsened over the past four years.

"The median loan-to-value (LTV) ratio moved from 67.7 to 69.6 between March 2015 and March 2019," said the Residential Asset Price Monitoring Survey adding that "banks have become increasingly risk-tolerant."

The RBI has been conducting a quarterly residential asset price monitoring survey since July 2010 on housing loans disbursed by select banks and housing finance companies across 13 cities: Mumbai, Chennai, Delhi, Bengaluru, Hyderabad, Kolkata, Pune, Jaipur, Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar...