The Reserve Bank of India on Thursday decided to increase the quantum of loan that could be granted under the scheme, from Rs 1 lakh to Rs 2 lakh with subject to the following conditions:
i. The period of the loan shall not exceed 12 months from the date of sanction.
ii. Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the end of 12 months from the date of sanction.
iii. State and central cooperative banks should maintain a Loan to Value (LTV) ratio of 75% on the outstanding amount of loan including the interest on an ongoing basis, failing which the loan will be treated as a Non Performing Asset (NPA).