The Reserve Bank of India (RBI) on Wednesday doubled the maximum loan amount that a cooperative bank can lend to an individual to up to ₹1.40 crore in view of the surge in housing prices.
The guidelines governing the maximum permissible loan limits for cooperative lenders were last reviewed over a decade ago.
RBI Governor Shaktikanta Das announced that urban cooperative banks will now be allowed to lend up to ₹1.40 crore as against the previous cap of ₹70 lakh, while rural cooperative banks can now lend up to ₹75 lakh as against earlier cap of ₹30 lakh.
