By Accommodation Times Bureau
Reverse Bank of India (RBI) in a move to boost affordable housing segment, on Wednesday in a statement it said, RBI has decided to revise the housing loan limits under Priority Sector Lending (PSL).
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.. This is essentially meant for an all-round development of the economy as opposed to focusing only on the financial sector
The revised housing loan limits for PSL eligibility is raised to Rs 35 lakh from Rs 28 lakh in metropolitan centres and Rs 25 lakh to Rs 20 lakh in other centres, RBI said in a statement.
The overall cost of a home in metropolitan centres should not exceed more than Rs 45 lakh and Rs 30 lakh in other centres.
By end of this month the circular in this regard will be issued, RBI said.
After the statement of RBI, the Financial Services Secretary Rajib Kumar tweeted, “Big boost to Housing for all. Increase in home loan limits under Priority sector lending to Rs 35 lakh in cities & Rs 25 lakh elsewhere to make such bank loans cheaper.”
The President of India has also given a big relief to home buyers by giving assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018