MUMBAI, Apr 26: To promote housing for low income groups Reserve Bank of India (RBI) has increased the limit of home loans to Rs 10 lakh from Rs 5 lakh.
The ceiling limit has been extended for the bank loans to non-governmental agencies, approved by National Housing Bank (NHB)
for their refinance, for on-lending for the purpose of construction or reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers, a RBI circular said.
The Finance Minister Pranab Mukherjee, in his Budget for 2012-13
proposed to enhance the limit of indirect finance under priority sector lending from Rs 5 lakh to Rs 10 lakh for construction or reconstruction of houses for the weaker section.
This will ease the banks effort in meeting the weaker sections target within the priority sector lending.
The revised limit is applicable to the bank loans sanctioned from the date of this circular, it added. (UNI)
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