Against The Infrastructure Bonds The Banks Can Now Lend Rs 10 lakhs
It is a good news for the people who have bigger dreams, but aren’t able to fulfil the same, because of the funds available. Reserve Bank of India has some good news for the low cost housing plans. They have extended the limit to 10 lakhs for individuals against the issuance of Infrastructure Bonds which are of course in long terms.
Reserve bank of India stated that this is done to provide liquidity to the investors of retail in such kind of bonds, and the banks are supposed to increase the amount to 10 lakhs when issued with long term bonds of infrastructures.
The Reserve bank of India also added that the ceiling value, which is 10 lakhs per borrower and the tenure by which it should be returned is supposed to be within the stated maturity period of the issued bonds. This is going to be beneficial for both the lenders and the borrowers, and to be precise the borrowers are going to get some more amount against the same bonds, which previously would have fetched them lesser amounts.
But, there is one thing which should be clearly mentioned, and that is that the bank lending the amount to the borrower is not liable to lend against the bonds which have been issued by some other bank.
The Union Budget put forward by Finance Minister Mr Arun Jaitley has it mentioned that this hike in the loan amount in the infrastructure sector has been done to absorb the probable adverse potential eventuality which are at times better known as the 5/25 structure.
As per Reserve Bank of India, this move is going to facilitate in more than one ways. As the infrastructure loans are meant for long term, and this is going to facilitate the banks with a higher interest amount. The borrowers are going to get more amount in return of their bonds issued, which is going to help them fulfil their long lived dreams. In the long run, it is one move that can change the future of Home Loans altogether, and this is necessary with the increasing prices of each and everything.
Article Source: The Financial Express
Finance Minister, infrastructure bonds, Infrastructure loans, low cost housing plans, Reserve Bank of India
