The State Level Bankers Committee (SLBC) at its next meeting is likely to consider a move to raise the ceiling of home and educational loans.
A recent District Level Review Committee (DLRC) meeting, attended by an RBI representative, mooted the move to raise the ceiling.
At the DLRC meeting, Lead Bank officials pointed out that the ceilings of both housing loans and educational loans had remained unchanged for years and hence, the banks were facing technical hurdles to release the required amount, even under the non-priority sector. According to them, the ceiling of housing loan alone had to be raised to at least Rs.60 lakh.
“Under the priority sector, the banks can easily sanction loans up to Rs.20 to 25 lakh for housing loans. This ceiling has to be raised for releasing additional amount after including them in the non-priority sector,” says Lead District Divisional Manager K. Bhuvanadas.
He adds that the proposal will be placed formally for the consideration of SLBC and RBI officials in the next meeting.
Mr. Bhuvanadas also points out that the current ceiling of educational loan in priority sector is Rs.10 lakh. “Bankers can sanction bonus amount after including it in the non-priority sector, but the ceiling has to be raised in this case too through the legal process,” he adds.
The loan application from a post-graduation student in medicine and a student in other streams could not be equated, said a banker.
The ceiling should be changed according to the fee structure of each course, he observed.
