Saturday, April 28, 2012

Up home loan cap to Rs 10 lakh for priority sector: RBI to RRBs

MUMBAI: Reserve Bank of India today asked all Regional Rural Banks (RRBs) to double the limit for housing loans to RS 10 lakh from RS 5 lakh considered under priority sector lending schemes.

"It has been decided to raise the threshold from RS 5 lakh to RS 10 lakh in bank loans to non-governmental agencies approved by NHB for its refinancing, the loan for the construction or conversion of the individual dwelling units .. . and rehabilitation of slum dwellers, "RBI said in a statement.

Loan of such a nature that fall under indirect finance to housing sector, as the final payment will be made through the National Housing Bank (NHB) approved non-governmental organizations.

In august 2007, the central bank kept the ceiling loan component RS 5 lakh per dwelling unit for priority sector lending and since then the RRBs considered home loan limit up to RS 5 lakh during the most vulnerable communities under priority sector lending scheme.

Given the shortage of housing for low income groups in major cities, including Finance Minister in his Budget for 2012-13 proposed to increase the limit on indirect financing under the priority sector from RS 5 lakh to RS 10 lakh.



MUMBAI: Reserve Bank of India today asked all Regional Rural Banks (RRBs) to double the limit for housing loans to RS 10 lakh from RS 5 lakh considered under priority sector lending schemes.

"It has been decided to raise the threshold from RS 5 lakh to RS 10 lakh in bank loans to non-governmental agencies approved by NHB for its refinancing, the loan for the construction or conversion of the individual dwelling units .. . and rehabilitation of slum dwellers, "RBI said in a statement.

Loan of such a nature that fall under indirect finance to housing sector, as the final payment will be made through the National Housing Bank (NHB) approved non-governmental organizations.

In august 2007, the central bank kept the ceiling loan component RS 5 lakh per dwelling unit for priority sector lending and since then the RRBs considered home loan limit up to RS 5 lakh during the most vulnerable communities under priority sector lending scheme.

Given the shortage of housing for low income groups in major cities, including Finance Minister in his Budget for 2012-13 proposed to increase the limit on indirect financing under the priority sector from RS 5 lakh to RS 10 lakh.



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1 comment:

  1. In India Reserve Bank of India asked all Regional Rural Banks (RRBs) to double the limit for housing loans to RS 10 lakh from RS 5 lakh considered under priority sector lending schemes

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