+91 7304447444 Connect to our virtual assistant
YouGrowWeGrow
banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.

Go Back to Main blog page

Affordable Housing To Get a Boost As Home Loans To Cost Less

By IIFL Home Loans | Published On Jun 08 2018 5:30 PM 2 min read 488 views 5213 Likes
Affordable Housing to Get a Boost as Home Loans to Cost Less

On 6 June 2018, Reserve bank of India revised home loan limits for priority sector lending in India. This implies that home loan limit for home buyers belonging to economically weaker sections will increase to Rs. 35 lacs from Rs. 28 lacs in metros and from Rs. 20 lacs to Rs. 25 lacs in non-metro cities.

As per RBI guidelines, bank in India have to lend 40% of all home loans to priority sector lending such as borrowers belonging to economically weaker sections and agricultural sectors etc. RBI decision to increase the limit will prompt lenders to focus more on the small-ticket size segment in order to increase their market share.

As per the revised policy of RBI, the home loan limit in non-metro centers will be increased from Rs. 20 lacs to Rs. 25 lacs. However, it should be noted that cost of the dwelling should not exceed Rs. 45 lacs in metro centres and Rs. 30 lacs in non-metro centres.

The decision to increase the limit will give boost to first-time home buyers in the country especially in the affordable housing segment. The move by RBI aligns perfectly with Pradhan Mantri Awas Yojana PMAY in which customers belongs to EWS/LIG category can avail CLSS Credit Linked Subsidy of up to Rs. 2.67 lacs*

Tags

apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.