Home › Circulars › RBI/2022-23/56

Housing repair loan limits raised for urban co-op banks

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/56 · issued 24 May 2022 · ~1 min read

Quick answerRBI has raised the ceiling on housing repair loans for individuals by Primary Urban Co-operative Banks: ₹10 lakh in metro centres (population 10 lakh+) and ₹6 lakh in other centres, replacing earlier limits of ₹2 lakh (rural/semi-urban) and ₹5 lakh (urban).

What changed

Earlier, the maximum loan for repairs/additions/alterations to dwelling units was ₹2 lakh in rural/semi-urban areas and ₹5 lakh in urban areas. Now, the ceiling is revised to ₹10 lakh for metropolitan centres (population 10 lakh and above) and ₹6 lakh for all other centres.

What it means for you

Urban co-operative banks can now offer larger housing repair loans, potentially boosting their housing loan portfolios. This aligns with rising construction costs and may increase demand for such loans, but banks must ensure prudent underwriting and adherence to other housing finance norms.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Update internal loan policy and sanction limits for housing repair loans to reflect new ceilings.
Train credit officers on revised limits and ensure proper documentation for metro vs. other centres.
Review existing loan applications pending approval to apply the new limits where applicable.
Communicate the revised limits to customers through branches and digital channels.

Who it affects

Primary Urban Co-operative Banks, Individual borrowers seeking housing repair loans, Credit departments of urban co-operative banks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 06:09 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What are the new loan limits for housing repairs?

For metropolitan centres (population 10 lakh and above), the ceiling is ₹10 lakh. For all other centres, it is ₹6 lakh.

Does this circular apply to all co-operative banks?

It applies specifically to Primary (Urban) Co-operative Banks, as addressed in the circular.

When do these revised limits take effect?

The circular is dated May 24, 2022, and is effective from that date.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #239: DOR.CRE.REC.18/09.22.010/2022-23 — "Housing Finance - Loans for Repairs / Additions / Alterations - Enhancement of Limits" dated May 24, 2022”

📜 Read the original circular — full text as issued by RBI

RBI/2022-23/56
 DOR.CRE.REC.18/09.22.010/2022-23
 May 24, 2022
 All Primary (Urban) Co-operative Banks
 Madam / Dear Sir,
 Housing Finance – Loans for repairs/additions/alterations - Enhancement of limits
 Please refer to para 2 of the circular UBD.CO.BPD.(PCB).Cir.No.13/09.22.010/2013-14 dated September 10, 2013 on the captioned subject, wherein, the ceiling on loans to individuals for carrying out repairs/additions/alterations to their dwelling units was revised upwards to ₹2 lakh in rural and semi-urban areas and ₹5 lakh in urban areas.
 2. The ceiling on such loans is now revised to ₹10 lakh in metropolitan centres (those centres with population of 10 lakh and above) and ₹6 lakh in other centres.
 Yours faithfully,
 (Manoranjan Mishra)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/56 · issued 24 May 2022. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12323&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.