real estate
The general budget to be presented on February 1 is going to be important for fintech companies, especially those involved in the home loan sector. The industry expects the Budget to take steps towards a more flexible and dynamic LTV framework. This will enable lending platforms to provide financial solutions that meet the needs of their customers. In such a situation, people of the industry are keeping an eye on what will happen in the budget this time on LTV ratio for the borrowers.
Investment in technology and data security top priority
Atul Monga, CEO and co-founder of Basic Home Loan, said, ‘Policies of reducing interest rates or keeping them stable can encourage borrowing, which will accelerate economic growth. A clear and simple regulatory framework will be important for this stability. Streamlined compliance processes can further enhance growth and efficiency in the financial system. Additionally, there is a growing demand for budgetary support for innovations that strengthen cyber security measures in the increasingly digitized financial services sector. Investment in technology and data security will be the top priority for the home loan industry.
tax reforms
Monga further said, ‘Talking about tax reforms, we expect the government to focus on streamlining tax structures, providing sector specific incentives and simplifying compliance processes. Our key expectations include the announcement of tax exemption or deduction for first-time home buyers. Because this will reduce the cost of buying a house and more and more people will be able to fulfill their dream of owning a house. Apart from this, we expect the budget allocation for schemes related to affordable housing to increase.
Infrastructure development is also important
Infrastructure development, including better roads, public transportation and utilities, is also important. This will make many areas more attractive for home buyers and will increase property prices. Additionally, we expect measures to increase housing demand such as simplifying the approval process for new developments and promoting affordable housing projects. Monga said, ‘If the dream of owning a home is to come true for a large section of people, then there is a need to make regulatory changes like lower down payment requirement and more flexible eligibility criteria for home loans. With such measures, more and more people will be able to realize their dream of owning a home.
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