Though just before the elections, the budget merely has to be a vote on account, but experts feel that Narendra Modi government will not shy away from providing as much as relief as possible to woo voters.
For the home buyer there is relief expected for the low income group who earn in the range of Rs. 3 lakh to Rs. 6 lakh. The carpet area can be increased to 80 square meter as against the current the 60, thus offering a bigger house. Other than thus govt. subsidies will be extended at a more liberal pace.
There can also be relief provided on the subsidy front which can be enhanced to Rs. 8 lakh for home loans in comparison to Rs. 6 lakh. This straight away means benefit of 6.5% on the interest component.
The LIG scheme categorization is as per the Pradhan Mantri Awas Yojana and maximum loan tenure can be up to 20 years.
In the earlier budget, the various reforms were introduced for the housing sector. Of them, Jaitley announced construction of 51 lakh houses in rural areas by the end of FY 2019.