RBI eases rules for low-cost home loans

MUMBAI (Reuters) - The Reserve Bank of India (RBI) has eased norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds.

The RBI however barred lenders from providing loans against long-term infrastructure bonds issued by other banks.

"Further, such loans should be subject to a ceiling, say, 10 lakh rupees ($16,170) per borrower, and tenure of loan should be within the maturity period of the bonds," the central bank said in a circular.

In July, the RBI had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.

($1 = 61.8400 rupees)

(Reporting by Neha Dasgupta and Suvashree Dey Choudhury; Editing by Biju Dwarakanath)