The Budget doesn’t have a direct impact on Loans but with the policy set up by the government there is impact on people who takes loan.

1. More Net take home- With limits raised to 2 lacs, there is % of people who will have more to take home, that means when loans are calculated the eligibility becomes better.

Some Information on New Budget 2013

The budget has brought good news for a New Home loan customers. Home loans upto Rs 25 lac will be allowed additional deduction of interest of 1 lac. This  will mean that the customers who are running home loans upto 25 lac can save on tax and will have more net income to hold on to.

For More Information Impacts of Budget 2013 On Home Loan – Check Here

Here are the new tax slabs of 2012

i. Exemption(no tax) limit raised from1.8 lakh to 2 lakh

ii. 10% tax on income slab raised to 5 lakh

iii. 20% tax on income from 5 lakh to 10 lakh

iv. 30% income on tax for income above 10 lakh.

2. Service tax increase – All charges made by banks like fees etc come with service tax. With government raising tax to 12%, there will be little increase in processing fee/late payment fee etc. The service tax increase will also effect new Home rates as these taxes will also have to be paid to buy a new home.

3. The scheme of interest subvention of 1 per cent on housing loan up to Rs 15 lakh has been extended for this year, where the cost of the house does not exceed Rs 25 lakh by one more year. This is a positive for buyers of low cost housing who finance their purchase through home loans.

The interest rates are not likely to come down soon as there was no indication by the finance minister in that regards. So for Home loan customer good news seems to be little far.