The Chairman/ Managing Director
All Scheduled Commercial Banks
(Excluding Regional Rural Banks and Small Finance Banks)
Dear Sir/ Madam,
Sector Lending – Targets and Classification
Please refer to Para 6 of
the Statement on Developmental and Regulatory
Policies of the Second Bi-Monthly
Monetary Policy Statement 2018-19 dated June 06, 2018 and Para
10.1 of Master Direction on Priority Sector
Lending – Targets and Classification dated July 7, 2016 (updated as on
April 16, 2018), prescribing eligibility criteria of housing loans
for classification under priority sector.
2. In terms of the above Master
Direction, loans to individuals up to ? 28 lakh in metropolitan centres
(with population of ten lakh and above) and ? 20 lakh in other centres, are
eligible to be classified under priority sector, provided that the cost of
dwelling unit does not exceed ? 35 lakh and ? 25 lakh, respectively.
3. With a view to bringing
convergence of the Priority Sector Lending guidelines for housing loans
with the Affordable Housing Scheme, and to give a filip to low-cost housing
for the Economically Weaker Sections and Low Income Groups, the housing
loan limits for eligibility under priority sector lending will be revised
to ? 35 lakh in metropolitan centres (with population of ten lakh and
above), and ? 25 lakh in other centres, provided the overall cost of the
dwelling unit in the metropolitan centre and at other centres does not
exceed ? 45 lakh and ? 30 lakh, respectively.
4. Furthermore, the existing
family income limit of ? 2 lakh per annum, prescribed under Para 10.4 of
the above Master Direction, for loans to housing projects exclusively for
the purpose of construction of houses for Economically Weaker Sections
(EWS) and Low Income Groups (LIG), is revised to ? 3 lakh per annum for EWS
and ? 6 lakh per annum for LIG, in alignment with the income criteria
specified under the Pradhan Mantri Awas Yojana.
5. All other terms and
conditions specified under the Master Direction shall remain unchanged.
Master Direction ibid, is being updated simultaneously to reflect the above
6. The revised guidelines shall
come into effect from the date of the Circular.
(Gautam Prasad Borah)
Chief General Manager-in-Charge