MUMBAI: RBI has revised priority sector lending norms, effective from April 1, to boost credit flow to key economic segments by increasing loan limits, expanding eligibility criteria, and raising targets.
The new norms have higher home loan limits and increased property cost ceilings across all categories. In cities with a population of at least 50 lakh, loans up to Rs 50 lakh will be eligible (as against Rs 35 lakh), provided the dwelling cost does not exceed Rs 63 lakh (earlier Rs 45 lakh). For cities with 10-50 lakh population, the cap is Rs 45 lakh, with a maximum unit cost of Rs 57 lakh.
In areas with a population below 10 lakh, loans up to Rs 35 lakh qualify, provided the unit cost does not exceed Rs 44 lakh. Changes in loans against agricultural produce also aim to improve liquidity for farmers.
Renewable energy loans have seen an increase in borrowing limits, with the maximum loan amount rising to Rs 35 crore for borrowers. Another key revision involves weaker sections and women beneficiaries. The loan limit for individual women beneficiaries has been doubled to Rs 2 lakh, with the cap not applicable to urban cooperative banks. RBI’s revised framework is expected to inject liquidity into critical but underserved sectors.