MUMBAI: India's central bank 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 ($16,000) 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 Reserve Bank of India 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.