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Rediff.com  » Business » RBI eases rules for low-cost home loans

RBI eases rules for low-cost home loans

November 27, 2014 18:23 IST
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The Reserve Bank of India (RBI) has eased norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds.

The RBI however barred lenders from providing loans against long-term infrastructure bonds issued by other banks.

"Further, such loans should be subject to a ceiling, say, Rs 10 lakh ($16,170) per borrower, and tenure of loan should be within the maturity period of the bonds," the central bank said in a circular.

In July, the RBI had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.

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Source: REUTERS
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