RBI doubles the limit on home loans issued by Urban Cooperative Banks to eligible borrowers

The RBI has doubled the limit on home loans issued by urban cooperative banks (UCB). Now tier-I UCBs can issue individual housing loans of up to Rs 60 lakh while tier-II UCBs are allowed to offer loans of up to Rs 1.4 crore. The revision in lending limits for UCBs was last done in 2011. UCBs cannot charge foreclosure charges or pre-payment penalties on home loans extended on a floating interest rate basis. Housing loans issued by UCBs should be repayable within a maximum period of 20 years.The RBI has doubled the limit on home loans issued by urban cooperative banks (UCB). Now tier-I UCBs can issue individual housing loans of up to Rs 60 lakh while tier-II UCBs are allowed to offer loans of up to Rs 1.4 crore. The revision in lending limits for UCBs was last done in 2011. UCBs cannot charge foreclosure charges or pre-payment penalties on home loans extended on a floating interest rate basis. Housing loans issued by UCBs should be repayable within a maximum period of 20 years.taxmann.com Latest Statutory HappeningsRead More

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