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    Question

    Which of the following categories of borrowers are

    eligible for housing loans from Urban Cooperative Banks (UCBs)? Direction (18 to 21)-  Read the following information to answer the questions below: The role of primary (urban) co-operative banks (UCBs) in providing housing finance has been reviewed from time to time. These banks, with their vast network, occupy a very strategic position in the financial system and have an important role to play in providing credit to the housing sector. Further, housing finance to specified categories up to prescribed limits is treated as priority sector lending, and the need for UCBs providing credit to priority sector has come to be increasingly recognised consistent with the social objectives placed before the banking system. Therefore, with a view to enabling the UCBs to play a more positive role in providing finance for housing schemes, particularly to the weaker sections of the community, these banks are permitted to grant loans for housing schemes up to certain limits from their own resources subject to the guidelines detailed hereunder.
    A Proprietorship firms Correct Answer Incorrect Answer
    B Small and Medium Enterprises (SMEs) Correct Answer Incorrect Answer
    C Companies listed on stock exchange Correct Answer Incorrect Answer
    D Co-operative and group housing societies Correct Answer Incorrect Answer
    E Private limited companies Correct Answer Incorrect Answer

    Solution

    Urban Cooperative Banks (UCBs) are allowed to grant loans to 1.    individuals and co-operative / group housing societies, 2.    Housing boards undertaking housing projects or schemes for economically weaker sections (EWS), low-income groups (LIG) and middle income groups (MIG). 3.    Owners of houses / flats for extension and up-gradation, including major repairs.

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