Thursday, February 28, 2013

Budget 2013 - proposals related to low income housing

There seems to be very little in the 2013 Budget proposals which affect low income housing (developers / financing) - in fact just three specific items: 

• Increase in allocation to the Rural Housing Fund ("RHF") from Rs 4000 crore to Rs 6000 crore;

• New Urban Housing Fund ("UHF") to be set up with Rs 2000 cr; 
both the above schemes to be administered by the NHB (as refinance schemes). 

RHF increase (and possibly the new UHF) will help MHFC - as all our loans are less than 10 lakhs and generally to weaker sections (same objective as the RHF and possibly the UHF).


and 

• Increase in the tax deduction on interest paid on housing loans (to 2.5 lakhs - from current 1 lakh) on home loans less than 25 lakhs

also see Mint article - Feb 28, 2013 for sops to the sector

No comments: