A home is a place where one feels secure and comfortable. It reflects oneself. It shows your lifestyle and achievements. Renovating your home or redoing it can be a gruelling process — a rescue mission one has to take part in when the time comes. It is time-consuming and definitely not a one-person job. Most of all, it can be very costly. This is where opting for a home renovation loan will surely help.
A home renovation loan comes in handy when you wish to repair, renovate, or even just refurbish your home and give it a complete makeover. Looking at the high inflation rate, one cannot think of just taking out a large chunk of their earnings for a home makeover these days. However, this loan helps fulfil your dream and give your home a new look, without burning your pocket. This loan can help keep your dream home in good shape, and one doesn't even have to wait for funds to accumulate to do so. Similar to other loans, these loans help improve the home you already have, so you don't have to spend on a new one. Hence, a home renovation loan is the best way to finance all your home improvement.
Why should you prefer a home renovation loan?
Following are the key features and advantages of opting for a renovation loan.
1. Lower interest rates:
Compared to a personal loan, renovation loans are offered at a lower interest rate by the lender.
2. Tax benefit:
Renovation loans are inclusive of tax deductions under section 24(b) of the Income-tax Act, 1961
3. Fast approval process:
Many banks offer approval of renovation loans in less than 72 hours. Help is provided for filling out the application form on the spot. All relevant documentation is also taken and reviewed immediately.
4. Customization flexibility:
A home renovation loan gives ease and flexibility for varied activities related to repairs/renovation for your home, like painting, garden, fittings, plumbing, roofing, etc. You can use your loan amount for any activity related to the structure of your home.
5. Flexible home improvement repayment options:
Many banks offer flexible home renovation repayment options suiting an individual. A personal loan for home improvement is offered for a loan tenure of 1 to 5 years. One gets a flexible option to pay back in equal monthly instalments (EMI).
6. Less paperwork and easy disbursement:
If you are an existing customer of the same bank from where you seek a home renovation loan, then it requires minimal paperwork or documentation. Hassle-free and seamless processing of the application process and documents helps in easy and quick disbursement of loans.
7. House value increases for future sale:
With an easy home renovation loan, one can renovate or give a makeover to the existing house, which increases its lifespan. This adds value to the existing home if it has to be sold in the future.
8. Bank transfer facility-
In case you get a better interest rate from another lender, you can transfer your outstanding renovation loan to another lender. A disclaimer is that the new lender will minutely look into your credit history, as everything depends on your credit score.
9. Adds comfort, style, and value to your old property:
A home improvement loan helps restore and renovate the house with new features and add-ons, like a modular kitchen, new furniture, fittings, etc. All the aspects you add will provide a style matching your comfort.
Eligibility criteria for taking a home improvement loan
The eligibility criteria are as follows:
- The applicant must be a resident Indian to qualify for a home improvement loan. There are different rules and guidelines for NRIs to be eligible for this loan.
- New applicants or existing customers can apply for a home renovation loan only if they are adults aged 18 years and above.
- Any resident Indian working as salaried personnel in a company or is a self-employed business owner can apply for a home improvement loan.
- Most importantly, credit score. An applicant with a good credit score has a better chance of availing the home improvement loan. Many banks or lenders offer attractive and low-interest rates to individuals with high credit scores.
- Co-owned property and loan papers are encouraged by many banks. They offer attractive rates to women (mother or wife) for the position of co-owner.
With work-from-home becoming popular, one always wants to live in a beautiful house with all amenities designed as per their taste and preference. A well-maintained house will have higher rent value and easy saleability in the future if need be. But redesigning or renovating your home can add to the financial burden that already exists in these unprecedented times. The easy availability of home renovation loans helps solve all this and more.
Final Words
A home renovation loan is taken for all your renovation, refurbishment, and purchasing of new furniture, fittings, painting, roofing, plumbing, kitchen work, etc. Many banks offer affordable home improvement loans with a hassle-free process and minimal paperwork. Like any other loan, it is advisable to read all terms and conditions of the loan before finalizing an option. This also helps in finding the best available rate in the market. Maintaining a good credit score for a hassle-free process and disbursement of the loan amount is also important.
If you are considering renovating your house, Tata Capital can help you with a home renovation loan.
25 July 2022
5 mins read
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