Banks to exclude registration and stamp duty for home loans

The RBI has issued a circular to all commercial banks to the effect that the stamp duty, registration and documentation charges should not be included in the amount given by banks as loans. These expenses do not add value to the property and are non realizable. The practice of including the above mentioned charges to the loan amount increases the loan to value ratio, which is set at 80% for properties above 20 Lacs and should not exceed 90% for properties below 20 Lacs.