Home Loans By Co-Operative Banks: Govt Outlines Borrowing Limits 

Pankaj Chaudhary, Minister Of State(MoS), Ministry Of Finance outlined the various benefits of co-operative banks for borrowers. He also outlined the amount of money these banks can offer as loans depending on their category. On December 17, Chaudhary explained the benefits and the loan advancing limits for co-operative banks in response to a question by BJP leader Baburam Nishad.

Chaudhary said that cooperative banks serve as an important channel for providing housing loans in unserved and underserved regions in India. He added that State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) have a wide network comprising 16,000 branches spread across 35 States and Union Territories. Chaudhary added that more than 78.5 per cent of these branches are located in rural and semi-urban areas.

Chaudhary said that co-operative banks are owned and operated by their members and serve the “Concern for Community”.  He added that these banks also play an important role in providing affordable credit to their members in a timely manner.

The minister also outlined the amount of money co-operative banks can lend in the form of residential housing loans to individual borrowers based on the limits revised by the Reserve Bank of India (RBI) in 2022.

The minister said that StCBs and DCCBs with a net worth below Rs 100 crore can offer a residential housing loan of up to ₹50 lakh to individual borrowers.  On the other hand, StCBs and DCCBs with a net worth equal to or more than Rs 100 crore can offer a loan of up to ₹75 lakh.

The minister stated that Tier-I Urban Co-operative Banks (UCBs) which have deposits of up to Rs 100 crore can offer loans of up to ₹60 lakh. Tier-II UCBs which have deposits of more than ₹100 crore and up to ₹1000 crore can offer loans up to ₹140 lakh.