RBI directs banks to enhance housing loan limits for eligibility under priority sector lending

Reserve Bank of India (RBI) has directed banks to enhance the housing loan limits for eligibility under priority sector lending (PSL) to Rs 35 lakh in metropolitan centres (with population of ten lakh and above) and Rs 25 lakh in other centres.

In order to bring the RRBs and SFBs at a level playing field with other Scheduled Commercial Banks, it has now been decided to enhance the housing loan limits for eligibility under PSL.

Accordingly, in respect of RRBs and SFBs, housing loans to individuals up to Rs 35 lakh in metropolitan centres (with population of ten lakh and above) and Rs 25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centres and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively, will be eligible for classification under PSL.

Earlier, loans to individuals up to Rs 28 lakh in metropolitan centres and Rs 20 lakh in other centres, were eligible to be classified under priority sector, provided that the cost of dwelling unit does not exceed Rs 35 lakh and Rs 25 lakh, respectively.