RBI revises the Housing Loan limit under Priority sector

CLR Note: The Reserve Bank of India passed a notification on Monday, 9th May, 2011, with regard to the increase in the limit for the housing loan under the priority sector from a limit of Rs.20 lakh to Rs. 25 lakh, irrespective of the  location, to individuals for purchase/construction of a dwelling unit per family,excluding loans granted by banks to their own employees.


The Chairman/Managing Director/Chief Executive Officer
[All Scheduled Commercial Banks (excluding Regional Rural Banks)]

Housing Loan limit under priority sector

Please refer to paragraph 6.1 of our master circular RPCD.CO.Plan.BC.10/04.09.01/2010-11 dated July 1, 2010 on lending to priority sector, wherein loans up to Rs.20 lakh irrespective of location, to individuals for purchase / construction of dwelling unit per family, excluding loans granted by banks to their own employees are eligible for classification under priority sector.

2. Pursuant to the announcement made by Union Finance Minister in paragraph 44 of the budget for the year 2011-12, it has been decided to increase the above limit from Rs.20 lakh to Rs.25 lakh.

3. The above change will be applicable to housing loans sanctioned on or after April 1, 2011.

Yours faithfully,

General Manager


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