Cooperative Banks Enhances Housing and Real Estate Credit Limits


The Reserve Bank of India (RBI) has enhanced the existing limits on individual housing loans by cooperative banks. Accordingly, the limits for Tier I /Tier II Co-operative Banks (UCBs) shall stand revised from Rs 30 lakh/ Rs 70 lakh to Rs 60 lakh/ Rs 140 lakh, respectively.

While, regarding Rural Cooperative Banks (RCBs), the limits shall increase from Rs 20 lakh to Rs 50 lakh for RCBs with assessed net worth less than Rs 100 crore and from Rs 30 lakh to Rs 75 lakh for other RCBs.

Further, as per the extant guidelines, State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) are prohibited from extending loans to the commercial real estate sector. While, considering the growing need for affordable housing and credit facilities to the housing sector, it has allowed StCBs and DCCBs to extend finance to Commercial Real Estate- Residential Housing within the existing aggregate housing finance limit of 5 per cent of their total assets.

RBI has notified that a detailed circular regarding the said development will be issued separately.

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Knowledge Source :

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