It’s good news for those who want to buy or make a house . In fact, the Reserve Bank of India has increased the housing loan limit under ‘priority sector lending (PSL)’. RBI has issued instructions to banks in this regard.
According to the RBI’s decision, the limit is now Rs 35 lakh for metro cities. Earlier, there was a limit of Rs 28 lakh for metro cities. However, there is a condition that the total cost of the house should not be more than Rs. 45 lakhs.
Similarly, for the non metro cities , the RBI has directed banks to make this limit to Rs 25 lakh, which was Rs 20 lakh earlier. The condition here is that the total cost of the house should not be more than Rs 30 lakhs. This means that if buying a home then home loan will be within the scope of the PSL on buying the house within this price limit.
Actually, banks are given a target on behalf of the RBI to contribute to the development of the country. Under this, they have to give loan to concessional rates to the fixed sector.
According to the RBI, there are 8 sectors in the PSL category. It includes housing, agriculture, education, small industries, and others including export loans. The sectors related to the large population and economically weaker sections have been included under this category.
RBI has been announcing interest rates from time to time for loans under PSL. Loans are provided on the basis of this. The special thing is that the interest rates of PSLs are relatively low.