RBI doubles home loan ceiling for co-op banks

MUMBAI: The RBI has announced relaxations that will enable co-operative banks to meet more loan demands from individual borrowers and real estate developers. Urban co-operative banks have also been allowed to provide doorstep banking services.
As part of developmental measures, the RBI doubled the maximum amount that a co-operative bank can extend to an individual in a home loan. The new limit for urban co-operative banks is now Rs 1.4 crore and takes into account the increase in prices over the last decade that has elapsed since the limit was set. Rural co-operative banks can now lend up to Rs 75 lakh as against the earlier cap of Rs 30 lakh.
“Taking into account the increase in housing prices since the limits were last revised and considering customer needs, it has been decided to increase the existing limits on individual housing loans by co-operative banks,” Das said. Rural co-operative banks include state co-operative banks and district central co-operative banks, and their net worth will determine the maximum permissible loan limits, Das said.
Banks that have a net worth of Rs 100 crore and above can now lend up to Rs 50 lakh per individual housing loan as against the previous cap of Rs 20 lakh, while others can give loans of up to Rs 75 lakh, Das said. Rural co-operative banks have been permitted to lend for development of commercial real estate projects for housing. The move will increase the access for affordable housing, the RBI said.