Master Circular: Finance for Housing Schemes – UCBs
This master circular outlines the guidelines for Urban Co-operative Banks (UCBs) for financing housing schemes.
Eligible Borrowers: Individuals, groups, and institutions are eligible for housing loans.
Eligible Housing Schemes: Loans can be provided for construction, purchase, or renovation of residential units.
Terms and Conditions:
Maximum loan amount and margins are specified. Interest rates, foreclosure charges, and penal interest rates are outlined.
Security, loan period, and graduated installment plans are also defined.
Additional Finance: Supplementary finance can be provided for housing loans.
Lending to Housing Boards: UCBs can lend to housing boards for construction of residential units.
Advances to Builders/Contractors: Loans can be provided to builders/contractors for construction of residential units.
Housing Loans under Priority Sector: Housing loans up to ₹28 lakh in metropolitan areas and ₹20 lakh in other areas are considered priority sector lending.
Precautions: UCBs should exercise caution while lending for housing schemes.
National Building Code: UCBs should ensure compliance with the National Building Code.
Annex-1: Defines Commercial Real Estate Exposure (CRE) and provides illustrative examples.
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Download: Master Circular- Finance for Housing Schemes – UCBs