Home » World News » Give home loan up to Rs 25 lakh in priority sector:RBI to UCBs

Give home loan up to Rs 25 lakh in priority sector:RBI to UCBs

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 540 other followers

Tweet!

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

MUMBAI: In order to facilitate enhanced lending, Reserve Bank today allowed Urban Co-operative Banks (UCBs) to provide housing loans up to Rs 25 lakh under the priority sector lending schemes.

“UCBs would, henceforth, be permitted to utilise the additional limit of 5 per cent of total assets for grant of housing loans to individuals upto Rs 25 lakh, which is covered under the priority sector,” RBI said in a notification.

At present, it said, UCBs are permitted to assume aggregate exposure on real estate, commercial real estate and housing loans up to a maximum of 10 per cent of their total assets with an additional limit of 5 per cent of their total assets for housing loans up to Rs 15 lakh.

On its second quarter monetary policy review in November 2010, the RBI permitted all UCBs to lend up to 10 per cent of their total assets to housing, real estate and commercial real estate and an additional 5 per cent for purchase and construction of dwelling units, costing up to Rs 10 lakh.

“Due to the high cost of dwelling units, UCBs found it difficult to use the additional limit of 5 per cent of total assets,” the central bank said.

In May 2011, the RBI hence allowed UCBs to utilise the additional 5 per cent of their total assets permitted earlier, for housing loans up to Rs 15 lakh.

Advertisements

1 Comment

  1. super real says:

    Just because a loan can include a lot of concealed charges just as one example interestcommitments as well as financial
    charges, a large amount of people often avoid first until it
    could be essential super real what this happens to become
    will be the homework, do a little home work prior to deciding to
    decide as you could possibly be able to save some money month after month and every year
    making in payments.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: