- As per RBI’s recent notification limit on loans for carrying out repairs, or any alterations to their house had now been revised to Rs 10 lakh in metropolitan centers Rand s 6 lakh in other centers for all urban cooperative banks.
- Initially, the limit was pegged at Rs 2 lakh in rural and semi-urban areas and Rs 5 lakh in urban areas.
- However, the improvement loans don’t require any form of collateral. They are completely based on credit score and income.
- Interest rates may vary from home loans as it depends on the loan amount taken for home renovation.
- As per The Reserve Bank of India, the loan amount cannot exceed the caps put on home loans.
- Renovation loans also come up with many attractive tax benefits under the 24b section of the Income-tax Act, 1961.
Question:
Q.1 What is the new limit decided by the RBI under the housing finance limit for Urban areas?a. 5 Lakh
b. 6 Lakh
c. 10 Lakh
d. 3 Lakh
