RBI Hiked Repo Rate in Bi-Monthly Policy:
Although, the Reserve Bank of India (RBI) has hiked the repo rate in its bi-monthly policy, but it has offered something to the common man to cheer about. According to RBI, the housing loans of upto 35 lacs will be considered for the benefits of priority sector lending (PSL). It’s have in under RBI Home Loan Policy.
Earlier only housing loan upto Rs. 28 lac was eligible for these benefits. PSL loan rates are relatively cheaper than market interest rates.
RBI has done this with a view to bring convergence of the Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme, and to give a fillip to the low-cost housing for the Economically Weaker Sections (EWS) and Low Income Groups (LIG).
RBI Revised Home Loan Limits:
RBI says it has revised the housing loan limits for PSL eligibility from 28 lacs to 35 lacs in metro cities (with population of ten lacs and above) and from Rs. 20 lacs to Rs. 25 lacs in other centres. However, there is a condition that the overall cost of the house should not exceed Rs. 45 lacs in the metropolitan centres and Rs. 30 lacs in other centres for being classified as priority sector.
The RBI notification further stated that the existing family income limit of Rs. 2 lacs per annum for loans to housing projects stands revised to Rs. 3 lacs per annum and Rs. 6 lacs per annum for Economically Weaker Sections (EWS) and Low Income Groups (LIG), respectively.
RBI Scheme With Pradhan Mantri Awas Yojana (PMAY):
This, RBI added, has been done in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana (PMAY).
The PMAY has been framed keeping the constraints of the urban poor and the middle income group in mind as these individuals dream of having a house of their own, but are often unable to do so because of the lack of resources and their inability to obtain a loan at an affordable home loan interest rate.
To address this particular issue, the Government introduced the Credit Linked Subsidy Scheme (CLSS) for the Economically Weaker Sections (EWS) and Middle Income Group (MIG).