NBFCs urge RBI for reduced risk weight on property loans
MUMBAI: Non-bank lenders are urging the central bank to reconsider certain regulations, including risk weights for products like loans against property (LAP). They argue that the risk profiles of these assets do not warrant being categorized alongside unsecured loans or standard mortgages. According to one source familiar with the matter, “Losses on LAP are considerably lower than those on housing loans, primarily due to heightened transaction risks in housing finance.” They feel risk weights for LAPs should be reduced or, at the very least, aligned with those of housing loans. In discussions with the Reserve Bank of India (RBI), non-banking…
