If you are planning to renovate your home or thinking of revamping it, there is no need to haul it due to an insufficient budget. All you need to do is apply for a home improvement loan and give your home a brand new makeover! Don’t know what a home improvement loan is?
Home Improvement Loans are secured loans taken against the mortgage of your property which can be used for a variety of reasons including remodeling, renovating, updating, or making repairs to your home. Apart from major work that needs to be done in a house, these loans can also be taken to help you furnish your house and pay for things like bathroom fittings, fans, furniture, etc.
This loan is similar to home loans or personal loans with the only difference that the loan amount needs to be used towards renovating or repairing your existing home. This loan is affordable, flexible, and the most preferred financial way to remodel your house. Let’s have a look at the benefits of a home improvement loan.
Low-interest rate
In comparison with personal loans, home improvement loans offer a lower rate of interest. A home improvement loan is usually available at the same rates as a home loan, making it an attractive financial option as it is secured against your home-ownership.
Tax Benefit
A home improvement loan allows you to avail of tax benefits on the interest component. You will get a deduction of a certain amount under Section 24 for the interest that you will pay on these loans, thus reducing your overall cost of borrowing.
Minimum Documentation
Home improvement loans comprise relatively simple documentation when compared to other modes of financing. All you require is basic documentation like identity or income proof, photographs, a property title deed, etc. In case you are an existing customer of the housing finance company, the documentation becomes simpler.
Flexibility
Home improvement loans can be used for your home renovation activities including repairs, flooring replacement, an extension of your home and painting, etc. You can use this loan for any work that is related to your home structure.
Fast Processing
Home improvement loans are processed quickly as the documentation is minimal and hassle-free. So you can get your renovation work started at the earliest without a long wait for your loan application to be approved.
Eligibility
You can apply for home improvement loans individually as well as jointly. If your home is jointly owned, all owners of the property have to necessarily apply for the home improvement loan. However, your family members may become joint applicants for the loan even if they are not joint owners of the house.
Here are a few things that you should keep in mind while applying for a home improvement loan
Documents required for a home improvement loan
Make sure you have all these documents handy with you when you apply for a home improvement loan.
- Duly filled application form
- A valid photo identity proof
- Proof of income such as salary slips, bank statements, latest Form 16 and IT returns
- Property documents for which the renovation is planned such as the original title deed, a home renovation estimate, and an encumbrance certificate
- A cheque for the processing fee
Having your home renovated will not only enhance the utility of your home, but it will also uplift your spirits and give you the satisfaction of proudly showcasing your home to family and friends. The availability of hassle-free home improvement loans removes the budget constraint that may be holding you back in giving a much-needed makeover to your home. The benefits that come along with this just add to its beauty. Now, give your home the shape that your heart desires.
