PRIORITY STATUS TO BOOST HOUSING DEMAND

To facilitate credit flow into the cash-strapped real estate sector, the Reserve Bank of India (RBI) on Saturday announced several measures, including a refinance facility for the National Housing Bank and priority sector status for housing loans up to Rs 20 lakh.

RBI said the loans granted by banks could classify housing loans up to Rs 20 lakh given to house finance companies (HFC) as “priority sector” advances, subject to a ceiling of five per cent of their total priority sector target.

The Hindu Business Line