Banks fearing fall in realty prices; may tighten loan ratio

Published on Sat, Sep 06, 2008 at 15:16 |  Source : CNBC-TV18

Updated at Mon, Sep 08, 2008 at 17:13  

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By Priyanka Ghosh , CNBC-TV18

Fearing that a fall in property prices may be around the corner, banks are now tightening their grip on the amount of home loan sanctions.

 

Banks have decided to finance a smaller portion of property value owing to the concern that fall in realty prices may mean unrecoverable defaults.

 

Kotak Mahindra Bank will lower the loan amount by 70-80%; whereas ICICI Bank and Axis Bank have indicated a reduction of 70% each.

 

  

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