Banks can lend more to housing fin NGOs

Commercial banks can now lend more to non-governmental organisations (NGOs) engaged in financing houses for slum dwellers.

The Reserve Bank of India (RBI) on Wednesday raised exposure limits for banks to these NGOs to Rs 10 lakh, provided these agencies on-lend for the specific purposes.

RBI said in a release: “Pursuant to the announcement made by Union Finance Minister in the Union Budget for the year 2012-13, it has been decided to increase the limit from Rs 5 lakh to Rs 10 lakh for bank loans extended to non-governmental agencies, approved by NHB for their refinance, for on-lending for the purpose of construction/reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers.”