A home is a direct reflection of who you are as a person. It’s your haven that you want to upgrade and decorate continually. But renovating your home comes at a massive cost. Even the cost of installing a false ceiling in the entire house can ride well into thousands.
With the rising cost of overall living and home décor and renovation getting more expensive by the day, how do you fulfill your dream of turning your house into the home you’ve always envisioned? Some people apply for personal loan to decorate their houses. While this is an obvious choice, did you know that there is actually a specific home renovation loan that’s tailor-made for this purpose?
Home renovation loans are getting increasingly common. There are many benefits to taking a loan for home improvement. They come at affordable interest rates, so you’re not going overboard with your finances to repay the money. You also need not go through the hassles of submitting multiple documents to avail the loan. With just a few basic documents attesting your identity, income proof, etc., you’re all set to take a home improvement loan. Since there aren’t a lot of documents involved, your loan application also gets processed much quicker so you can start the work immediately.
One of the most attractive benefits of home renovation loans come in the form of tax benefits. Taking a loan for home improvement ensures tax benefits that help you save money. Under Section 24 of the Income Tax Act, you can avail up to Rs 30,000 tax benefits per annum on your home improvement loan. However, note that this deduction of Rs 30,000 falls within the limit of Rs. 2 lakhs that have been set for loan interest payment on self-occupied homes.
What this means is that the Act allows a total deduction of Rs 2 lakhs on home-related loans, which includes the purchase of the home, as well as a home renovation. Out of the Rs 2 lakhs specified, you can avail a tax deduction of up to Rs. 30,000 on home improvement loans. In the overall scheme of things, this tax deduction also lowers your cost of borrowing.
If you’re looking to beautify your home but do not have the budget for it, or if you’re hesitant to pay a hefty amount out of your own pocket, going for a home improvement loan is a prudent choice. While you get the funds to improve and renovate your home, the tax deduction benefit also makes it a financially wiser move. You can apply for a home renovation loan from Tata Capital that offers some of the best EMI options and personal loan interest rates.