Pune: Housing Societies in Maharashtra Given Go-Ahead for Redevelopment Loans by State Cooperative Bank
Pune, 17th May 2023: Housing societies in Maharashtra have been granted approval to obtain loans for redevelopment, as confirmed by Bank Administrator Vidyadhar Anaskar. The Maharashtra State Cooperative Bank will provide loans to old housing societies for their redevelopment.
Given that many buildings within these housing societies are over 60 years old and require redevelopment, the State Government has appointed the State Co-operative Bank as the “nodal agency” for this purpose. However, the bank faced challenges in providing loans to housing societies for redevelopment due to the policies of the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD). Finally, as per the circular issued by the Reserve Bank on June 8, the State Co-operative Bank and District Co-operative Banks have been authorized to grant loans to such societies, stated Anaskar.
For the fiscal year 2023-2024, approximately Rs 1,590 crore will be made available through the State Co-operative Bank for this sector. Housing societies will be eligible for loans to support the redevelopment of old buildings, as well as for the construction of new residential structures, explained Anaskar.
Deputy Chief Minister Devendra Fadnavis unveiled the State Bank’s redevelopment loan policy during a recent housing association conference. During the announcement, it was stated that the state government would provide a 4 percent interest subsidy on these loans. Consequently, the path has been cleared for eligible housing societies to secure loans at an interest rate of just 6.5 percent.
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