MUMBAI (Reuters) - The Reserve Bank of India (RBI) has allowed lenders to add the cost of registration and stamp duty in the total cost of a house valued at not more than 1 million rupees for determining the maximum loan the property can get, in a move aimed at boosting availability of affordable housing.
"It has been brought to our notice that these amounts form around 15 percent of the cost of the house and place a burden on the borrowers from economically weaker sections and low-income groups," the RBI said in a statement on its website late on Thursday, announcing the change.
Banks in India typically finance up to 85 percent of the cost of a property, while buyers are required to pay the remainder.
(Reporting by Devidutta Tripathy; Editing by Sunil Nair)
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