Co-op banks up credit limit to Rs 60L
Kannur: With investments picking up, the cooperative banks have increased their lending limits. Now investors can avail upto Rs 60 lakhs in loan instead of the previous Rs10 lakhs across various segments.
With this, the nearly 25 groups that have investments of over Rs 500 crores in the cooperative banks can avail loans of up to Rs 60 lakhs without any special permissions, replacing the earlier cap of Rs 50 lakh.
Kudumbashree will get Rs 10 lakh and home loan limit has been raised to Rs 35 lakh. Limit for car loans, business loans and gold loans have been raised to Rs 20 lakh. Educational loans will be a maximum of Rs 1 lakh up from the Rs 25,000.
Around Rs 80,000 crores is available as deposits in the different primary cooperative banks in the state. Each of these have a jurisdiction over one or two villages. Except in Idukki, all the other cooperative banks, especially the ones in Ernakulam, Thrissur, Kannur, Calicut and Thiruvananthapuram have excess deposits over and above their advance.
In most cases the banks deposit the excess deposits they hold above their lending limit to the District Cooperative banks. With the enhanced loan limits the banks are expecting to harness into the home and auto loan segments. They can even devise loan programs in partnership with private dealers.
The banks, with their wide reach, also targets to increase liquidity with their wide and decentralised reach in the post demonetisation scenario.