Union Finance Minister Nirmala Sitharaman announced that cooperative sector banks, including primary urban and rural cooperative banks, can now extend Commercial Real Estate Residential Housing (CRE-RH) loans within their housing finance limits.
The RBI revised housing loan limits for State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), and Urban Cooperative Banks (UCBs) on June 8, 2022, she added.
Additionally, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) recognized StCBs and DCCBs as Member Lending Institutions in 2022, promoting MSME sector growth. These banks are also eligible under government schemes like AIF, PM Vishwakarma, and PMFME, she underlined.
To support farmers, cooperative banks disbursed Rs 5,717 crore in loans during 2023-24. Short-term agriculture loans up to Rs 3 lakh are offered at 7%, reduced to 4% with a 3% Prompt Repayment Incentive under MISS, she said adding NABARD also provides refinance facilities to ensure timely credit flow, strengthening cooperative banks’ role in inclusive growth.