The Reserve Bank of India (RBI) has increased the eligibility cap on home loans extended by regional rural banks and small finance banks to ₹35 lakh in metropolitan areas and ₹25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centres and other centres does not exceed ₹45 lakh and ₹30 lakh.

All such loans will be now classified by these banks as priority sector loans.

In addition, the existing family income limit of ₹2 lakh per annum to be eligible for loans for housing projects exclusively for construction of houses for Economically Weaker Sections (EWS) and Low Income Groups (LIG), is revised to ₹3 lakh per annum for EWS and ₹6 lakh per annum for LIG, in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana, the RBI said.