BAJAJ BROKING
There’s talk that the upcoming budget might bring back interest subsidies to make urban housing more affordable. Let's dive into the details with insights from Bajaj Broking, because here, #BudgetSimpleHai.
There are expectations that this year's budget could heavily focus on affordable housing. New schemes might be introduced, and there’s hope for rationalization of taxes and additional funding for existing schemes like the Special Window for Affordable and Mid-Income Housing (SWAMIH). In the February interim budget, the government allocated ₹80,671 crore to the Pradhan Mantri Awas Yojana (PMAY).
If the government reintroduces the credit-linked subsidy scheme (CLSS) like PMAY, it could significantly reduce home loan EMIs, making your dream home more affordable. This scheme offers interest subsidies across different income categories:
Real estate developers are pushing for several key measures in the upcoming Union Budget to boost the sector’s growth. They seek rationalization of taxes, additional funding for affordable housing schemes, and continued government support to stimulate demand and sustain industry momentum.
In the interim budget, Finance Minister Nirmala Sitharaman pledged support for constructing an additional 20 million homes over the next five years under PMAY-Gramin. The government may introduce interest subvention for its middle-class housing scheme, with state-run Housing and Urban Development Corporation (HUDCO) as one of the nodal agencies. This could mean significant savings for middle-income homebuyers.
The CLSS scheme offers interest subvention across three categories: EWS, LIG, and MIG. For EWS/LIG, beneficiaries are eligible for a 6.5% interest subsidy on loans up to ₹6 lakh. For MIG, the subsidies are lower at 4% and 3%, respectively. Discussions are ongoing to determine the extent of the subsidy and the definition of the middle class for this scheme.
The reintroduction of interest subsidies could make urban housing more accessible and affordable. Over 8 million houses have been constructed under PMAY-U so far, out of the 11.8 million sanctioned. The Centre has released ₹1.6 lakh crore out of the ₹2 lakh crore committed under the scheme. The outlay for PMAY-U in the interim budget was 18% higher than FY24’s revised estimates, reflecting the government’s commitment to affordable housing.
Housing prices in 10 cities tracked by the RBI’s house price index were up 4.1% in the fourth quarter of FY24. Cities like Ahmedabad witnessed a double-digit increase during this period. The first Cabinet meeting of the Modi 3.0 government approved assistance to construct 30 million additional houses under PMAY-Urban and PMAY-Rural.
With the upcoming Union Budget, the government is expected to focus on making urban housing more affordable through interest subsidies and increased funding for housing schemes. This move could empower the neo-middle class in urban areas, boost labour-intensive construction activities, and create jobs.
Stay tuned to our website for more updates because with Bajaj Broking, #BudgetSimpleHai!
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Securities Transaction Tax: Meaning & Charges
12 Dec, 2024 | 7 Min. read
Gold Price in India | Gold Rises 1% to $2,719 Ahead of U.S. PPI Data
12 Dec, 2024 | 39 Min. read
Coca-Cola Sells 40% Stake in Bottling Arm to Jubilant Bhartia Group
12 Dec, 2024 | 2 Min. read
Indian Overseas Bank Receives ₹808.3 Crore Income Tax Refund
12 Dec, 2024 | 2 Min. read
Shakti Pumps Secures ₹754.3 Crore Solar Water Pump Order in Maharashtra
12 Dec, 2024 | 2 Min. read
Vedanta to Consider Fourth Interim Dividend on December 16
12 Dec, 2024 | 2 Min. read
Share Market Today | Flat to Positive Start Expected for Indian Markets Amid Global Cues
12 Dec, 2024 | 4 Min. read
International Gemological Institute India IPO Issue Date & Pricing
12 Dec, 2024 | 4 Min. read
How to Apply for International Gemological Institute India IPO?
12 Dec, 2024 | 3 Min. read
7th Pay Commission Leave Rules & Holidays in India
11 Dec, 2024 | 5 Min. read
Wipro Ltd
11 Dec, 2024 | 7 Min. read
Aditya Birla Group
11 Dec, 2024 | 10 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading