Infrastructure bonds: Bank can lend up to Rs 10 lakh

The RBI on Thursday allowed banks to extend loans up to Rs 10 lakh to individuals against long-term infrastructure bonds issued by them, thus easing loan norms for low-cost housing. 

"In order to provide liquidity to retail investors in such bonds, it has been decided that banks can extend loans to individuals against long-term bonds issued by them," RBI said in a notification. Such loans, the RBI said should be subject to "a ceiling, say , Rs 10 lakh per borrower, and tenure of loan should be within the maturity period of the bonds". However, banks are not permitted to lend against such bonds issued by other banks  Stock Market Trading Tips

Earlier, the RBI had exempted long-term bonds raised by banks from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of such projects. 

The RBI said boards of the banks should lay down a policy in this regard prescribing suitable margins, purpose of the loan and other safeguards Financial Astrology Trading Tips