Assocham urges RBI to increase house loan limit, India

Assocham urges RBI to increase house loan limit, India
Published: 10 December 2008

Assocham on Tuesday urged Reserve Bank of India to increase the priority sector home loan limit in order to boost the demand in housing sector.

In a survey conducted by Assocham in the wake of raising prices of apartments in major cities in the country, suggested that the housing loan limit classified as priority sector advances should be increased to Rs 40 lakh from 20 lakh in case of the metro cities, which account for 94 cent of the capital investment made in the sector.

The survey found that 70 percent of CEO’s surveyed out of 150 have expressed interest in RBI’s measure as they said it would help boost the demand in housing sector to some extent, but the real estate sector still lacks adequate government policy support.

However, majority of the CEOs especially from real estate, steel, cement, automobile and engineering have termed government’s stimulus package as ’highly inadequate’ for creating demand, retaining and generating jobs for skilled and semi-skilled workforce.