Categories: Banking

RBI increased individual housing loan limit for co-operative banks

Reserve Bank of India (RBI) has decided to increased the existing limits on individual housing loans provided by cooperative banks, taking into account the rise in housing prices since the limits were last revised and considering customers’ needs for larger loans. RBI has also permitted the Rural Cooperative Banks (RCB) for financing residential real estate projects, in a bid to support affordable housing and inclusive growth.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

About the limit:

Accordingly, the limits for tier 1/tier 2 urban cooperative banks (UCBs) stood revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh. As regards rural cooperative banks (RCBs), the limits have been increased from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for the rest. These limits were last revised for UCBs in 2011 and for RCBs in 2009.

Key points:

  • Considering the growing need for affordable housing and to realise their potential in providing credit facilities to the housing sector, the RBI has decided to allow state cooperative banks (StCBs) and district central cooperative banks (DCCBs) to extend finance to Commercial Real Estate – Residential Housing (CRE-RH) within the existing aggregate housing finance limit of 5% of their total assets. The RBI also permitted UCBs to offer door-step banking.

Find More Banking News Here

Sumit Arora

Recent Posts

Which District of Uttar Pradesh is known as the Katehar Region?

In Uttar Pradesh, certain areas are recognized by specific regional names that highlight their historical,…

5 hours ago

Which District of Haryana is Known as Brass City?

Haryana is a state in northern India known for its rich history and industrial growth.…

6 hours ago

Govt Should Include Coking Coal in Critical Minerals List: NITI Aayog

The NITI Aayog has recommended adding coking coal to India's critical minerals list, emphasizing its…

7 hours ago

UK and India to Relaunch FTA Talks in Early 2025: Strengthening Bilateral Ties

UK Prime Minister Keir Starmer announced the resumption of Free Trade Agreement (FTA) negotiations with…

7 hours ago

COP29 Tourism Sector Gains Global Support for Climate Action

COP29 marked a significant milestone in global efforts to address climate change within the tourism…

8 hours ago

Bali Celebrates Hindu Festival of Gratitude

Bali is home to a rich cultural heritage that blends Hindu philosophy, local animist traditions,…

8 hours ago