As the Union Budget 2025-26 approaches, home loan borrowers across India are hopeful that Finance Minister Nirmala Sitharaman will introduce policies that ease the financial burden on homeowners and make homeownership more accessible. Among many expectations, homebuyers hope the government reintroduces the Credit Linked Subsidy Scheme (CLSS) for MIG category also under the Pradhan Mantri Awas Yojana, under which a subsidy of up to Rs 2.67 lakh was offered to eligible beneficiaries.
What were the benefits under Credit Linked Subsidy Scheme (CLSS) of PMAY?
Homebuyers were offered an interest subsidy of up to 2.67 lakh per house. This amount was admissible for beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from banks, Housing Finance Companies, and other such institutions for acquiring/constructing houses.
Homebuyers were offered interest subsidies of 6.5%, 4%, and 3% on loan amounts up to Rs 6 lakh, Rs 9 lakh, and Rs 12 lakh, admissible for a house with a carpet area of up to 60, 160, and 200 Sq/meter for EWS/LIG, MIG I, and MIG II, respectively.
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The subsidy scheme was closed on March 31, 2022, for the EWS/LIG segments but reintroduced later. For the MIG segments, the scheme was closed on March 31, 2021.
Also read: Budget 2025: Govt may replace Income Tax Act, 1961 with THIS new law! What it means for taxpayers
Experts and real estate industry leaders’ expectations from Budget 2025
Experts and industry leaders have shared their expectations for the upcoming budget, highlighting key areas that could significantly benefit homebuyers, especially those in the middle-income group.
Tax Deductions and Incentives: A key expectation
Atul Monga, CEO & Co-Founder of BASIC Home Loan, believes that home loan borrowers are anticipating policy changes that would make homeownership more affordable. “Home loan borrowers are optimistic that policy changes in the Budget 2025 would ease their financial burden and make homeownership more accessible and affordable,”
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