Budget 2018: Benefits for Loan Seekers – Salaried & Self Employed Customers
This year’s Union Budget was presented on 1st Feb 2018, thus breaking the long continuing stereotype method of presenting a Union budget in the Month of March. This Year’s Union Budget, presented by Union Minister Arun Jaitley, can be considered as give and take; however, more like ‘give’ and less like ‘take’.
There were lots of aspects to cheer on, while some were the points, which can be considered as a negative side of the Budget. Not focusing on the negative sides, and sticking to the positives, especially talking about the Salaried & Self Employed Customers, who are seeking loans, we put forward our points, here:
Union Budget 2018 offered a serious hike on PMVVY
In the union budget 2018, the Finance Minister has proposed an extension to the Pradhanmantri Vaya Vandana Yojana (PMVVY) scheme till March 2020. Not only this, the proposal to increase the current investment limit from an existing limit of Rs. 7.5 lacs per senior citizens to Rs. 15 lacs. However, this aspect cannot be said to benefit the salaried and Self Employed Customers; however, this is one scenario which we can talk about, here.
Affordable Housing and section 80EE Deductions
In an attempt to the Promotion of affordable housing by extending Section 80EE deductions, the government offers additional deduction of up to Rs 50000 to first time home buyers who availed home loans during Year 2016-17. With the deduction available to the home loan interest over and above the Section 24b deductions, it’s a welcome move by the Union Budget 2018. With an upper cap being fixed at Rs 50 lacs on the property value and 35 lacs on the loan amount and, this Section 80EE was primarily focused at providing tax relief to affordable housing buyers. Extending the benefits of Section 80EE to home loans sanctioned in this financial year, this completely highlighted the government’s stated policy of promoting affordable housing.
MSME and Startups benefited from the Union Budget 2018
For the professionals especially, self employed, the Union budget focused on the MSMEs and Start-Ups and can be considered as a hit. In a big decision, the Union Budget provided a great benefit to the MSME Sector, thus benefiting the self employed professionals. A corporate tax rate of 25% has been extended to the MSME Sector companies, having a turnover upto Rs. 250 crores, thus extending the previous year’s limit from 50 Crores. Thus, the companies which file returns will be taxed at 25% in comparison to 30% corporate tax. In another noticeable move, the Finance Minister, Mr. Arun Jaitley announced for tax exemption for startups by 2 years. In the chance of the definition of startups, they are now benefitted non-tech enterprises with the benefits as well. With such benefits at offered by the government, more aspiring entrepreneurs will feel motivated to begin their startups, even if it comes by taking loans.
Healthcare Policy as announced under Budget
Offering a much impressed social security proposal announced by the Finance Minister, under the Union Budget 2018, an initiation of National Health Protection Scheme allowing 10 crore families and thus almost around 50 crores individuals with healthcare services. Under this scheme, around Rs. 5 lacs per family will be offered medical expenses, per year, thus creating a milestone in social security framework in the country. With such an announcement, the loan seekers will feel more motivated towards taking loan, as healthcare policy is already taken care by the government.
Agriculture, Infrastructure, and Digital Industry
For those entrepreneurs, who belong to the Agriculture, Infrastructure, and Digital Industry, will be pleased with the Union Budget 2018. The entrepreneurs belonging to the fisheries, animal husbandry and agriculture sector will be pleased to get the dedicated funds and having a minimum support price, thus pulling a reasonable section of society towards entrepreneurship. With the entrepreneurship, the people will be motivated towards the business loans and thus a better India filled with entrepreneurs can be achieved in the near future.
First time women workers
First time women workers have to contribute just 8%, instead of 12% in the initial 3 years. Thus, in a way, it is an act of motivation to the salaried women, with more take home pay package and thus motivating them to think on other dreams like own home etc, even if it comes at the cost of house loans.
Proposal to allow RRBs raise market capital
The budget 2018 proposed RRBs to raise market capital and thus enabling these institutions in a support to the credit flow in the rural sector, which in turn can result with lots of benefits to the loan seekers in near future!