Primary cooperative banks can now lend upto 10 lakhs for house repair or alteration

Reserve Bank of India (RBI) on Tuesday said primary cooperative banks can now extend loans of up to Rs 10 lakh to individuals for repair or alterations of their dwelling units in metropolitan centres.

“The ceiling on such loans is now revised to Rs 10 lakh in metropolitan centres (those centres with a population of 10 lakh and above) and Rs 6 lakh in other centres,” RBI said.

In September 2013, the ceiling on loans by such banks to individuals for carrying out repairs/additions/alterations to their dwelling units was revised upwards to Rs 2 lakh from the earlier limit of Rs 1 lakh in rural and semi-urban areas and Rs 5 lakh from the earlier limit of Rs 2 lakh in urban areas.

Loans granted under the enhanced limits for the purposes detailed above will also be eligible for classification under the priority sector. There is no change to the extant combined ceiling for housing, real estate, and commercial real estate loans granted by UCBs at 10% of total assets as also the additional limit of 5% of total assets for grant of housing loans up to Rs 25 lakh to individuals.

Surendra Naik

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Surendra Naik

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