In order to give a boost to the affordable housing segment, Reserve Bank of India has decided to revise the home loan limits under priority sector lending (PSL). With this decision, it is expected that the sales in affordable housing segment will prop up a lot and that too at a faster rate.
A press release issued by RBI said that it has been decided to brush up the housing loan limits for PSL eligibility from Rs 28 lakh to Rs 35 lakh in metropolitan centres and from Rs 20 lakh to Rs 25 lakh in other centres. The circular in this regard will be issued by the end of the month.
However, the overall cost of the residential unit in metropolitans and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively.
Financial Services Secretary Rajiv Kumar tweeted this development in his tweet which said, “Big boost to Housing for all. Increase in home loan limits under Priority sector lending to Rs 35 lakh in cities & Rs 25 lakh elsewhere to make such bank loans cheaper.”
Real estate experts have welcomed this move of RBI and said that this is a big boost for the first-time home buyers in metros who are looking to buy properties in the affordable segment. Besides getting subsidy benefits of Rs 2.68 lakh from the central government under schemes like Pradhan Mantri Awas Yojna, owning a house now in the metro cities will soon become a reality.
They further said that the way government is giving push to the affordable housing category through affordable housing fund, lower Goods & Services Tax (GST) rates, increased tenure of loans under Credit Linked Subsidy Scheme (CLSS) of Pradhan Mantri Awas Yojana (PMAY) and extended income tax benefits to apartments of up to 645-sq-ft carpet area will support this sector lot.
With all the revised decisions, it can be said that the move will definitely give a boost to the affordable housing real estate sector and also help in economic growth.