The Reserve Bank of India’s decision to increase annual family income limit for priority sector lending is expected to enable more beneficiaries to avail such loans for housing.
Late Tuesday, the central bank revised the existing limit for family income of Rs 2 lakh per annum for loans to housing projects for home construction for economically weaker sections (EWS) and low income groups (LIG), to Rs 3 lakh and Rs 6 lakh per annum, respectively.
This revision is in line with the income criteria specified under the Pradhan Mantri Awas Yojana.
On June 6, in its second bi-monthly monetary policy on, RBI had already decided to revise the housing loan limits for priority sector limit from Rs 28 lakh to Rs 35 lakh in metropolitan centres with population of 10 lakh and above, and from existing Rs 20 lakh to Rs 25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively.
The change in priority sector lending norms to cover more homebuyers is the latest in series of measures by the government to support homebuyers. The government has supported the housing sector through affordable housing fund, lower goods & services tax (GST) rates, increased tenure of loans under the Credit-Linked Subsidy Scheme (CLSS) of PMAY and extended income tax benefits to apartments of up to 645 sqft carpet area.