Please refer to Regulation R-5 of the Prudential
Regulations for Microfinance Banks.
2. In order to rationalize lending limits
under ‘Housing Finance’ for MFBs,
it has been decided to enhance the maximum
loan size from Rs. 500,000 to Rs. 1,000,000.
Moreover, the restriction to maintain 60%
of housing portfolio within the loan limit
of Rs. 250,000/- is also being removed.
3. However, MFBs shall develop related institutional
capacity and appropriate mechanisms for monitoring
the housing finance exposure. All other instructions
on the matter will remain unchanged.
4. Please acknowledge receipt.