Need money for house repairs?, These banks can give loans up to Rs.10 lakh; says RBI

Everyone knows that banks grant loans to people who want to buy a property, but many people are unaware that they can also acquire loans for home repairs. In such a case, let us inform you that if a person needs his house repaired or renovated, a loan option is accessible to him.

The Reserve Bank of India (RBI) said on Tuesday that primary cooperative banks can now offer loans of up to Rs.10 lakh to individuals for repairs or renovations to their homes in urban areas.

What was the previous loan limit for house repair?

In September 2013, the limit on loans made by such banks to individuals for repairs/additions/alterations to their dwelling units was raised to Rs.2 lakh in rural and semi-urban areas and Rs.5 lakh in urban areas.

“The cap on such loans has now been revised to Rs.10 lakh in metropolitan centres (those with populations of 10 lakh and above) and Rs 6 lakh in other centres,” the RBI stated in a circular addressed to primary (urban) co-operative banks.

Who cannot afford to fix their homes, they will get the benefit

Those who own a home but have an older home that need repairs will benefit from the RBI’s increase in the loan ceiling for house repairs. If such persons do not have the necessary funds to restore their homes, they can now do so by taking out a loan of up to Rs.10 lakh.

Primary cooperative banks in urban and semi-urban areas are referred to as urban co-operative banks.