personal-finance
Why did RBI raise co-op banks' home-loan limits?
Jun 09, 11:06

Borrowers might be disappointed with the repo-rate hike, but co-operative banks and their customers some reason to cheer. He raised the limits on individual housing loans that can be extended by urban (UCBs) and rural co-operative banks (RCBs). This was done to account for the housing prices that have increased substantially since 2009 and 2011, when the limits were last revised. Also, needs of these banks' customers have also changed, RBI said. For Tier-I and II UCBs, the limits have gone up from Rs 30 lakh and Rs 70 lakh to Rs 60 lakh and Rs 1.4 crore respectively. For smaller RCBs, Rs 50 lakh is the new limit, while it is Rs 75 lakh for other RCBs.

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