Understanding housing Finance
TPost budget and with various housing finance schemes launched for affordable housing, the home finance seem to have become attractive for the common home buyer. he Budget 2018 proposed allocation of a dedicated affordable housing fund in collaboration with National Housing Bank supported from a priority sector lending and fully serviced bonds authorised by the Government. Budget 2018 also announced several incentives for the poor, by increasing allocation for the EWS and the LIG to Rs 10 billion and doubling the subsidy amount to Rs 8 billion. This is further expected to boost the demand and supply of low-cost homes. The Pradhanmantriawasyojana (PMAY) scheme available for firsttime home buyers aims to provide 20 million houses for the urban poor by 2022, disbursing financial assistance of Rs 2 trillion. To boost the inventory of affordable homes by FY19, the government plans to build 51 lakh homes in rural areas and has provided assistance to construct 37 lakh home under PMAY. The Government has already been taking several noteworthy steps to build a conducive environment for the growth of the affordable housing sector. The prevailing ecosystem coupled with powerful government reforms such as the Real Estate Regulatory Act (RERA), Good and Services Tax (GST) and the Smart City scheme “All the recent government initiatives have created a favourable environment for the real estate and enhanced consumer interest towards purchasing affordable homes. Considering all these factors, home loans have definitely become more attractive post Budget 2018. DHFL through its deep understanding of the target segment and strong distribution network has been leveraging these opportunities which are reflected in our steady growth,’ commented Harshil Mehta, JMD & CEO, DHFL Mehta pointed out the factors to be considered while opting for home financing schemes.