Master Circular – Housing Finance for UCBs
This circular outlines the guidelines for housing finance for Urban Co-operative Banks (UCBs).
Eligible Borrowers: The circular defines the eligible category of borrowers, including individuals, groups, and institutions.
Eligibility and Terms: It outlines the eligibility criteria, terms, and conditions for housing loans, including maximum loan amounts, margins, interest rates, foreclosure charges, and security requirements.
Loan Period and Repayment: The circular specifies the period of loan, graduated instalments, and aggregate limit for housing finance.
Additional Finance and Lending: It provides guidelines for additional/supplementary finance, lending to housing boards, and advances to builders/contractors, including valuation of land.
Priority Sector and Precautions: The circular covers housing loans under the priority sector and precautions to be taken by UCBs.
Annexures: The circular includes two annexures, one defining commercial real estate exposure (CRE) and another providing directions from the Hon’ble High Court of Delhi.
The circular aims to provide a comprehensive framework for UCBs to follow while providing housing finance to their customers.
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