After this decision of RBI, now urban cooperative banks can give loans up to Rs 1.40 crores instead of 70 lakhs and rural cooperative banks up to Rs 75 lakhs instead of 30 lakhs.
New Delhi. The Reserve Bank of India (RBI) has increased the limit of home loans given by co-operative banks by more than 100%. Now cooperative banks will be able to give home loans up to Rs 1.40 crore to customers. This was announced by Reserve Bank of India Governor Shaktikanta Das on Wednesday.
After this decision of RBI, now urban cooperative banks can give loans up to Rs 1.40 crores instead of 70 lakhs and rural cooperative banks up to Rs 75 lakhs instead of 30 lakhs. Earlier, about a decade ago, the maximum permissible loan limit of the cooperative bank was increased.
Buying a house is already very expensive
The RBI Governor said on this decision that since the last time the loan limit of cooperative banks was increased, now the prices of houses have increased significantly. Now people have to spend more money to buy a house. In view of this need of the customers, the Reserve Bank has increased the limit of loan given by the cooperative bank to the customers by 100.
Builders will also get loan
RBI also said that rural cooperative banks will now be able to give loans to builders who have started housing projects. At present, Co-Operative Bank does not provide commercial loans. The Governor said that this decision has been taken in view of the increasing need of affordable houses in the country and to provide loan facilities to the housing sector. He said that with this decision, the flow of loans from cooperative banks to the housing sector will increase further.
Reserve Bank hikes repo rate
UCBs may be permitted to provide door-to-door banking services to their customers. “This will enable UCB to meet the needs of its customers, especially senior citizens and differently-abled.” Reserve Bank of India (RBI) has again increased the repo rate. This time there has been an increase of 50 basis points (.50 per cent). The repo rate has increased to 4.90 percent. The Central Bank gave information about this in a press conference after its bi-monthly meeting that ended on Wednesday.
