RBI enhances housing loan limits under priority sector lending | Current Affairs, Current Affairs 2018

RBI enhances housing loan limits under priority sector lending

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Aiming to offer affordable housing, the Reserve Bank of India (RBI) has enhanced the housing loan limits under priority sector lending (PSL) to Rs 35 lakh in metropolitan cities.

In a notification, it said, ‘With a view to bringing convergence of the Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme, and to give a filip to low-cost housing for the economically weaker sections and low income groups. The housing loan limits for eligibility under priority sector lending will be revised to Rs 35 lakh in metropolitan centres (with population of ten lakh and above), and Rs 25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively.

Furthermore, the RBI said that existing family income limit of Rs 2 lakh per annum, for loans to housing projects exclusively for the purpose of construction of houses for EWS and LIG, has been revised to Rs 3 lakh per annum for EWS and Rs 6 lakh per annum for LIG, in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana.
In addition, loans to individuals up to Rs 28 lakh in metropolitan centres and Rs 20 lakh in other centres, will be eligible to be classified under priority sector, “provided that the cost of dwelling unit does not exceed Rs 35 lakh and Rs 25 lakh, respectively”

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