“The Honourable Finance Minister has presented a balanced budget considering the limited time frame and the current state of the Indian Economy. However the budget lacks the much awaited big bang reforms.

 The Budget is extremely positive for the Housing Finance Sector as Affordable Housing is set to gain the maximum from the increase in Tax Rebate on housing loan  interest repayment from Rs.1.5 lacs  to Rs.2 lacs and increase in exemption under section 80C from Rs.1 lacs to Rs.1.5 lacs for principal repayment. The effective interest rate on a Rs.25 lacs home loan at 10.25% p.a will come down to 5.75% p.a.

 Affordable Housing will further get a boost with the allocation of Rs.4000 crores to NHB for lending to the urban poor, EWS & LIG and Rs.8000 crores for rural housing. Additionally the removal of minimum size requirement for FDI projects with 30% or higher low cost housing component will further help in development of the housing sector in the country”

  – Mr. Gagan Banga, Vice Chairman and MD, Indiabulls Housing Finance Ltd.