The Reserve Bank of India (RBI) made an announcement on June 6 through the ‘Statement on Development and Regulatory Policies’ that housing loans borrowed up to an amount equal to Rs.35 lakh in metropolitan centres will be considered as Priority Sector Lending (PSL). PSL loans are cheaper when compared to the market loan interest rates.
While the criteria for metropolitan centres has been increased to Rs.35 lakh from Rs.28 lakh, the criteria for other centres has been increased to Rs.25 lakh from Rs.20 lakh. However, the benefit comes with a condition. The total dwelling cost of a dwelling unit is required to be Rs.45 lakh in a metropolitan centre and Rs.30 lakh for other centres for the loan to be considered a PSL loan.
RBI said in the notification that the PSL loan eligibility criteria were revised so that the economically weak sections and low-income groups of the society can afford housing. The idea was to reduce the rift between the PSL criteria and Affordable Housing Scheme criteria.
Additionally, the family income limit for housing projects for the Low Income Groups (LIG) and Economically Weaker Sections (EWS) has been increased from Rs.2 lakh to Rs.6 lakh and Rs.3 lakh respectively.
Source: Indian Express