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Home Loans to become cheaper until March 2023? Here’s what RBI has to say

Here is good news for all those who were planning to get home loans for their dream home. RBI on Friday announced that it has relaxed its Loan to Value (LTV) ratios for new home loans till March 2023.

What is LTV?


LTV is checked by banks/lenders to determine how risky a loan is and whether they should approve or deny it. The loan to value ratio is the financial ratio that compares the size of the loan the customer wants to the value of the asset the customer will purchase. RBI’s governor Shaktikanta Das also said that they will rationalise the risk weights.

Previously, the RBI kept key lending rates – repo rates unchanged during the MPC meeting (Monetary Policy Committee) for the financial year 2022-23. According to the RBI announcement, the repo rate is at 4% now. Hence, interested home loan customers will be able to pay easy monthly instalments at a flexible interest rate.


So, get to know more Loan to Value ratio here and enjoy the benefits offered by RBI this financial year. The pandemic has hit us greatly, and such benefits will help people finally achieve their dreams.

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