With the Union Budget due in two days, home loan borrowers are hoping for measures to alleviate their burden. As property prices rise and interest rates fluctuate, many people expect Finance Minister Nirmala Sitharaman to provide relief in the form of tax breaks, subsidies, and other benefits.
 
"Affordable housing remains a critical component of the nation's development agenda, and Budget 2025 provides an important opportunity to make this vision a reality. Introducing initiatives to reduce home loan interest rates would provide much-needed financial relief to families, stimulate the real estate and related industries, create jobs, and drive economic growth," said Gaurav Mittal, Founder at Golden Abodes, a property development firm.

Key expectations for Budget 2025, according to financial experts:

Tax Deductions
 
"Lowering home loan interest rates could boost the housing sector, and increasing the Section 24(b) tax deduction limit from Rs 2 lakh to Rs 3 lakh would provide much-needed relief. Expanding PMAY (Pradhan Mantri Awas Yojana) subsidies and reviving the Credit Linked Subsidy Scheme (CLSS) could also boost demand, according to Aditya Jhaveri, founder and CEO of Blox, which describes itself as an end-to-end digital home-buying platform.

Credit-linked subsidy scheme.

There is widespread support for reintroducing CLSS under PMAY. This program previously provided interest subsidies to first-time homebuyers, and its revival may make homeownership more accessible to low-income groups. Many stakeholders believe that updating income criteria and loan limits under this scheme is critical to improving housing affordability.

GST Reductions
 
Another area of focus is the Goods and Services Tax (GST) on housing. Experts believe that lowering the 18% GST on under-construction properties and affordable housing could help reduce overall costs for homebuyers. "The Budget may not directly lower home loan rates, but any measures aimed at improving housing or economic stability will have a positive impact. However, the RBI will likely be cautious in its rate cuts, balancing inflation concerns with the need to support growth. So while we can reasonably expect lower rates in the near future, the entire picture will depend on how the economy plays out," said Pranit Arora, Founder and CEO of the market research platform Univest.

Pramod Kathuria, Founder and CEO of Easiloan, stated, "As we await these announcements, it is hoped that Budget 2025 will strike a balance between fiscal responsibility and immediate, exigent measures for affordable housing solutions, ushering in a better and more stable future for homeowners across the country."