Reserve Bank of India has increased the housing loan limit and repayment period. RBI has issued a circular regarding this. RBI issued circular no. 7 dated 31-10-2011 about housing loan limit and repayment period. RBI under this circular increased the repayment period up to 20 years and loan limit to 30 lakhs and 70 lakhs Tier 1 USB and Tier 2 USB respectively. Full circular is as under.
All Primary (Urban) Co-operative Banks.
Chief General Manager- in- Charge
- to increase the individual housing loan limit from `25 lakh to `30 lakh for Tier I UCBs and from `50 lakh to `70 lakh for Tier II UCBs, subject to extant prudential exposure limits; and
- to enhance the maximum repayment period of housing loans from the present period of 15 years to 20 years.