By George Alexander Muthoot,
Presenting the maiden budget of Modi 2.0 government, Ms. Nirmala Sitharaman has highlighted the government`s thrust to infuse liquidity in the NBFC sector. In line with our expectations, the Debt Redemption Reserve (DRR) for public issues has been exempted. Also, the credit guarantee provided by the government will further open up the liquidity line for fundamentally sound NBFCs.
We welcome the government`s focus on Affordable Housing. The interest deduction on home loans raised by Rs 1.5 lakh to Rs 3.5 lakh and also the housing cost being fixed at Rs. 45 Lakh and below. With RBI now being the regulatory authority for Housing Finance as well, it will lead to easy regulation as all financing sectors would fall under one authority.
In order to accelerate the goal of ‘Housing for All’, the tax holiday provided to developers will boost affordable housing sector.
The author is MD at Muthoot Finance.
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