INSUBCONTINENT EXCLUSIVE:
Housing loans of up to Rs 35 lakh, for dwellings costing less than Rs 45 lakh, will be treated as PSLMumbai: Housing loans of up to Rs 35
lakh, for dwellings costing less than Rs 45 lakh, will be treated as priority sector lending (PSL) to give a fillip to the low-cost segment,
the Reserve Bank said today
PSL loans are relatively cheaper than market interest rate."With a view to bringing convergence of the PSL 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, and Rs 25 lakh in
other centres," the RBI said in a notification.There is a condition however that the overall cost of the dwelling unit in the metropolitan
centre (with population of ten lakh and above) and at other centres should not exceed Rs 45 lakh and Rs 30 lakh, respectively, for being
classified as priority sector.Currently, loans to individuals for up to Rs 28 lakh in metropolitan centres and Rs 20 lakh in other centres,
can be classified under priority sector, provided that the cost of dwelling unit does not exceed Rs 35 lakh and Rs 25 lakh respectively.An
announcement in this regard was made in the 'Statement on Developmental and Regulatory Policies' released along with the Second Bi-Monthly
Monetary Policy on June 6.The RBI notification further said that the existing family income limit of Rs 2 lakh per annum for loans to
housing projects for Economically Weaker Sections (EWS) and Low Income Groups (LIG) stands revised to Rs 3 lakh per annum and Rs 6 lakh per
annum, respectively.This, it added, has been done in alignment with the income criteria specified under the Pradhan Mantri Awas
Yojana.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
