Thursday, August 14, 2025

Budget 2025 – How New Policies Affect Home Loan Buyers in Bangalore & Karnataka

By Udaysagar Mortgage Broker – CSC Certified | Trusted Loan & Property Finance Expert since 2009

The Union Budget 2025 has introduced key changes that will directly impact home loan buyers in Bangalore Urban, Bangalore Rural, and across Karnataka. Whether you are a first-time home buyer, a property investor, or looking to refinance your existing loan, understanding these updates can help you make smarter decisions.

1. Increased Tax Benefits on Home Loan Interest

Budget 2025 has increased the tax deduction limit on home loan interest payments under Section 24(b) from ₹2 lakh to ₹2.5 lakh. This is great news for salaried and self-employed buyers in Bangalore, as it reduces the effective cost of borrowing.

2. Extension of PMAY Subsidy Scheme

The Pradhan Mantri Awas Yojana (PMAY) scheme has been extended for another year, giving eligible buyers a subsidy of up to ₹2.67 lakh. This is especially useful for those purchasing affordable housing projects in Bangalore Urban & Rural.

3. Reduced Stamp Duty for First-Time Buyers

The Karnataka state government, in line with the budget’s push for affordable housing, has announced a reduced stamp duty of 3% for properties valued up to ₹45 lakh. This directly lowers the upfront cost of property purchase.

4. Boost for Infrastructure in Bangalore

Major investments have been allocated to Bangalore Metro Phase 3 and suburban railway expansion. Improved connectivity often leads to higher property value appreciation – making this an opportunity for smart buyers to invest now.

5. Simplified Loan Approval for B Khata & Hakku Patra Properties

In collaboration with financial institutions, the government plans to streamline loan approvals for semi-legal properties like B Khata and Hakku Patra. This opens up financing opportunities for areas previously hard to fund.

Key Takeaways for Buyers

  • Check your loan eligibility under the updated PMAY scheme.
  • Factor in the increased tax benefits when planning your EMI budget.
  • Consider properties in upcoming metro and railway zones for better ROI.
  • Explore financing options for B Khata and Hakku Patra properties.

How We Can Help

At Udaysagar Mortgage Broker, we specialise in home loans, mortgage loans, B Khata financing, Hakku Patra finance, and balance transfers across Bangalore Urban, Rural, and Karnataka. With over 15 years of experience, we guide you through every step – from eligibility checks to final disbursal.

📞 Call/WhatsApp: +91-78292 11579
📍 Office: Malleshwaram, Bangalore Urban

Disclaimer: The information in this article is for educational purposes only. Please consult a tax or financial advisor for personalised guidance.

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