Mumbai: The Reserve Bank of India (RBI) increased the individual housing loan limit of cooperative banks in the country. As per the new decision, cooperative banks can give full amount as home loan for individuals. As per the apex bank, the new decision will facilitate better flow of credit to the housing sector.
The increased limits will apply for both Primary (Urban) Co-operative Banks (UCBs) and Rural Cooperative Banks (RCBs). RBI last revised the maximum permissible loan limits for cooperative banks a decade ago.
Also Read: RBI allows credit card linking with UPI
The limits for Tier I or Tier II Urban Co-operative Banks will stand revised from Rs 30 lakh (Tier I) or Rs 70 lakh (Tier II) to Rs 60 lakh (Tier I) or Rs 1.4 crore (Tier II) respectively. For Rural Cooperative Banks, the limits shall increase from Rs 20 lakh to Rs 50 lakh for Rural Cooperative Banks with assessed net worth less than Rs 100 crore; and from Rs 30 lakh to Rs 75 lakh for other Rural Cooperative Banks. RCBs can be both State Cooperative Banks and District Central Cooperative Banks.
The borrowers are eligible for housing finance for construction / purchase of houses / flats by individuals or for repairs, alterations and additions to houses / flats by individuals.
Post Your Comments