All you want to know about home renovation loans
March 29, 2019
Whether you are a homeowner planning to spruce things up or just bought an unfurnished flat, home improvements can indeed be a daunting challenge. This guide to financing for your home renovations will walk you easily through the process and make everything a lot more manageable.
What are home renovation loans?
Home renovation loans are specifically designed for the purpose of renovating a home and can be taken by any individual who owns the property to be renovated. The loan can be given for up to 15 years, and the interest lies in the range of 9.5% to 10.5% per year. The processing fee for the renovation loan may range between 0.5% to 1% of the total loan amount. However, the maximum duration may vary depending on the company policies. Apart from the major work that needs to be done in the house, a renovation loan can also help you in furnishing your house and pay for the things like electrical fittings, bathroom fittings, furniture, etc.
Who can apply for home renovation loans?
You can apply for home renovation loans if your age is more than 18 years and you are able to prove your reimbursement capacity to the lender. Direct lenders don’t have any problem in lending money to the average-income group borrowers.
Process of getting the loan
• Find out your eligibility
• Choose your loan amount and tenure
• Submit your loan application and all requisite documents
• Get the funds in your account
Basic requirements in getting your loan approved
To get your house renovation loan approved quickly, you need to give the following details:
• Personal details including your PAN number to check the CIBIL score
• Copies of the pay slips, permanent address proof and the bank statements.
Factors that determine interest rates
• The credit score
• The loan amount
• Type of loan
• Your income
• The ability of the individual to repay the loan
Why opt for a home renovation loan?
• Your property value will increase
Improving your home will increase the market value of your property. Only a few key changes to your house can make it more attractive to the potential buyers if you opt to sell it.
• Fix anything which is broken
You can show your house some love and fix all the creaks and leaks by taking house renovation loan.
• Upgrade your space to make it more eco friendly
Many home owners upgrade their homes these days in an effort to lower their carbon footprint and cause less impact on the environment. With a few eco-friendly upgrades like rainwater harvesting, solar set-ups, you will be setting an example for others.
• You deserve a home that’s comfortable
Beautify your kids’ room or get yourself a stylish modular kitchen that you have always fantasized about. Since it is your dream home, it should be no less than your personal castle.