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Repayment schedule of rural housing loans

RBI No. 2004 -05/140

DBOD. BP. BC. 34 / 21.04.048/ 2004-05

August 26, 2004

All Commercial Banks (excluding RRBs)

Dear Sir,

Repayment schedule of rural housing loans

As announced by the Hon’ble Finance Minister in the Union Budget 2004-05, it has been decided to revise the norms for repayment for rural housing loans extended by banks under Indira Awas Yojana and Golden Jubilee Rural Housing Finance Scheme by linking repayment to the crop cycles. Accordingly, we advise that while fixing the repayment schedule in case of rural housing advances granted to agriculturists under Indira Awas Yojana and Golden Jubilee Rural Housing Finance Scheme, banks may ensure that the interest/ instalment payable on such advances are linked to crop cycles.

Yours faithfully,

sd/-

( C. R. Muralidharan)

Chief General Manager-in-Charge


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