Home loan till 35L likely to get cheaper

New Delhi, June 6: The affordable housing segment will get a boost with RBI on Wednesday raising the loan limits under priority sector lending ( PSL), and the government deciding to use surplus land of sick PSUs for construction of such dwelling units.

In another development, the President has promulgated an ordinance recognising home- buyers as financial creditors, thus giving them greater say in insolvency of defaulting builders.

In a statement, Reserve Bank of India said that it has been decided to revise the housing loan limits for PSL eligibility from ` 28 lakh to ` 35 lakh in metropolitan centres and from ` 20 lakh to ` 25 lakh in other centres.

The overall cost of the dwelling unit in the metropolitan centre ( with population of 10 lakh and above) and at other centres does not exceed ` 45 lakh and ` 30 lakh, respectively.

Loans given under PSL are less expansive than those provide by the banks in their ordinary course.

“Big boost to Housing for All. Increase in home loan limits under Priority sector lending to ` 35 lakh in cities and ` 25 lakh elsewhere to make such bank loans cheaper,” financial services secretary Rajiv Kumar said in a tweet after the statement of the RBI.

■ HOUSING LOANS upto ` 35 lakh in metros and upto ` 25 lakh in other centres will come under priority sector lending, which will attract lower interest rate. The upper limit for this was ` 28 lakh previously.