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The Apex bank of India, RBI has eased the norms to get the fund for low-cost housing by permitting banks and other financial institutions to extend the loans against long-terms bonds of infrastructure.

However, earlier Reserve Bank of India barred the lenders from providing the loans against the infrastructure bonds on long term basis by other banks. In further addition from the circular of Central Bank, “These loans should be subject to a ceiling, like; Rs. 10 lakhs ((approx. $16,170) per borrower, whereas the tenure of loan should be within the bonds maturity period”.

In July, Reserve Bank of India (RBI), had allowed the long term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.