Business & Finance

Urban Cooperative Banks and Credit Societies to Offer Higher Housing Loan Limits and Longer Repayment Terms

By The Hindu Bureau

Cooperation Minister V. Gandhiraj announced new guidelines for housing and mortgage loans from Urban Cooperative Banks (UCBs) and Urban Cooperative Credit Societies (UCCSs). The maximum individual loan limit for UCCSs rises to ₹60 lakh for societies with deposits below ₹100 crore and to ₹1 crore for those with deposits above ₹100 crore. For UCBs, the limit is ₹60 lakh for banks with deposits below ₹100 crore and ₹1.40 crore for those with deposits above ₹100 crore, in line with Reserve Bank of India rules. The maximum repayment period for both UCCSs and UCBs has been extended to 20 years to ease monthly payments. The Cooperation Department noted that some UCBs had been offering loans below RBI‑prescribed limits, causing inconsistencies among banks, and has instructed them to extend loans up to the applicable limits. It has also directed UCBs and UCCSs to review and amend their loan policies and by‑laws and obtain approval from the Regional Deputy Registrar. Eligible members may apply for loans at their banks or societies by submitting identity proof, address proof, income certificates, and land or property documents. Published – October 28, 2026 12:40 am IST