Affordable Housing Loan Limits from RBI

The Reserve Bank has altered Priority Sector Lending (PSL) eligibility and classification norms. The crucial decision was announced in the second bi-monthly policy statement on June 6. But what does that translate into for a home buyer? Let’s have a closer look.

Revised PSL eligibility: Revision in housing loan limits for PSL eligibility is to give a boost to affordable housing sector and help in economic growth.
For metropolitan citizens: The housing loan limits for eligibility under PSL will be revised to Rs 35 lakh in metropolitan centres from the previous Rs 28 lakh. It is applicable for centres with a population of over 10 lakh and for properties where the overall cost of the dwelling unit does not exceed Rs 45 lakh.
For other citizens: The housing loan limits for eligibility under PSL will be revised to Rs 25 lakh from the previous Rs 20 lakh, provided the overall cost of the dwelling unit in the centre does not exceed Rs 30 lakh.

Higher family income limits: The existing limit for family income of Rs 2 lakh per annum for loans to housing projects for economically weaker sections is revised to Rs. 3 lakh per annum. For low-income groups, it is revised to Rs 6 lakh per annum. The welcome move is in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana.

This is a big boost for first-time home buyers in metros who are looking to buy properties in the affordable segment. Add to it the subsidy benefits of Rs 2.68 lakh from the central government under schemes like Pradhan Mantri Awas Yojana. Now, owning a house in the metros will soon become a reality for many.