Good news for Homebuyers – Loan limits increased for Affordable Housing.

Good news for Homebuyers – Loan limits increased for Affordable Housing.

The Reserve Bank of India made a decision to increase the limits on loans for PSL (Priority sector lending) which may assist in the first-time homebuyers get greater amounts of loans at better terms which in turn may boost the sales of Affordable Houses.

RBI revised the housing loan limit for PSL from Rs 28 lakh to Rs 35 lakh in cities with a minimum population of 10 lakh and from Rs 20 lakh to Rs 25 lakh in other cities. This is on condition that the overall cost of the house does not exceed Rs 45 lakh for metropolitan cities and Rs 30 lakh for other cities.

The RBI has also raised concerns over rising minor crimes and suggests at lesser loan to value of the property.

Reduced home loan interest rates and necessary impetus by the government has helped to boost sales of the affordable housing sector. The housing sector has been supported by the government through lower GST rates, affordable housing fund, increased duration of loans CLSS of Pradhan Mantri Awas Yojana (PMAY) and extended income tax benefits to apartments of maximum carpet area of 645 sq ft.

According to Khushru Jijina, MD of Piramal Finance & Piramal Housing Finance the decision would up the sales of affordable houses which will in turn help in economic growth.

The rating agency CRISIL is of the view that the decision will allow most of the housing loans given by banks to qualify for PSL which would be positive for the banks. CRISIL also added that as of April 2018, 37% of the housing loans given by the banks qualified for the PSL.

June 11, 2018 / 1 Comment / by / in , , , , , , ,
Prime Minister sets March 2019 as deadline for online permission of Buildings

Indian Prime Minister Narendra Modi has set a deadline for all municipalities to get online to grant consent for the development of buildings. This deadline has been set up as March 2019. To review the progress of urban projects being built under the Urban Rejuvenation Mission, AMRUT, the PM has asked all the agencies to complete the geo-tagging of the projects by the end of this month.

Modi issued these directives amid the monthly PRAGATI meet during his online interactions various ministers, secretaries and chief secretaries of the states. As indicated by the Urban Affairs Ministry, 370 municipal bodies out of 500 mission cities have gone online for granting building permission. This method allows the people to get the required permission by putting an online application instead of going to the municipal offices. This is one of the major push by the government under its ‘ease of doing business’ initiative.

To initiative of geo-tagging of under-construction projects has been taken up to monitor the progress in order to assure no delays in the construction of the projects.

The UPA had launched AMRUT in the form of JNNURM, but the monitoring of the scheme was not up to the mark.

June 4, 2018 / by / in , , ,