Commerical property loans will see a northward movement with the new RBI guidelines wherein the risk load has been increased.
Currently most loans have an interest rate between 7.5-12.5% basis the credit rating of the borrowing company. The risk load had been slashed previously from 150% to 100% and with the growing signs of revival, the central bank wants to be cautious and has asked the banks to mark it at 125%.

At 100% risk load, banks must kee Rs 9 as capital for every Rs 100 they lend.
The same amount changes to Rs 11.25 Rs at the 125% risk load- which means a direct increase in the fund costs for Commercial Real Estate (CRE) projects.