The year October 2015 has spread waves of happiness among Indians after the Reserve Bank of India (RBI) announced the change in home loan policy. And this change of policy gave a significant boost to the slow real estate market.
The new guideline set by the RBI made buying an affordable housing unit a lot easier than before. Home loans for ₹ 20 Lakhs or less had a Loan to Value Ratio of 90% and the amendment in policy stated that the Loan to Value ratio (LTV) for home loans up until the value of ₹ 30 lakhs was raised to 90%.
Now some of you might be wondering what is Loan to Value (LTV) ratio. LTV is defined as the proportion of the property that the bank will extend to the borrower as a loan.
In short and simple words, it means that the bank will provide 90% of the value of the property as a loan to the borrower, which will ease his or her process of buying their dream home. 90% is the highest amount of loan which can be sought by a borrower and he or she also can consider opting for a loan value of less than 90% as per their needs and requirements.
After the initiative was taken by the Prime Minister Shri Narendra Modi towards affordable housing scheme under “Pradhan Mantri Awas Yojana” that aims at providing “Housing for All by 2022”, the sale of affordable housing units in Gurgaon and India witnesses a major improvement.
The circular of RBI followed a reduction in interest rates of home loans by India’s leading banks. It was said that this initiative will not prove beneficial for metro cities such as Gurgaon, Delhi, Mumbai, Bengaluru, Kolkata, etc., but after a review of the scheme, it was observed that metro cities and non-metro cities are performing well.
For example, Sohna Road in Gurgaon has become a hub of affordable housing projects in Gurgaon. The city is a major part of Delhi NCR and it is following an upward trajectory motion since the introduction of affordable housing projects in Gurgaon.
Best affordable housing in Gurgaon is OSB Golf Heights located in Sector 69 Gurgaon, which is just 1 km away from Sohna Road. Booking is open for this residential project and interested home buyers have an option to choose from 1 and 2 BHK apartments with essential amenities and conveniences.
The reduced LTV( loan to value Ration) has enhanced the capability of potential home buyers who are now ready to invest in the affordable housing segment of the real estate industry. The confidence in the buyers have gone up and the overall customer sentiment is redefining the world of real estate.
Soon, every Indian will have their dream home and nobody has to be scared in order to make an investment in the real estate industry. There are a lot of real estate developers in the industry who are working devotedly towards affordable housing market and one such developer is OSB group who has successfully delivered many affordable projects across India.