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Guide to Use a Home Renovation Loan to Finance Your House Renovation

By Finserv MARKETS - Jan 31,2019
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Guide To Use Home Renovation Loan For Home Improvement

Your home is more than just a place you live in. It is your pride and reflects your over personality. Over the years, there may be a need to renovate your home or redo your home interiors and it is quite often the case that, you delay such renovations due to lack of funds.

Well, not anymore! You can now avail of a home renovation loan to undertake improvements without any delays. These loans are quite like regular housing loans with the only difference that the loan amount needs to be used towards improving/renovating your existing home.

You may opt for a secured improvement loan where the property is used as a collateral against the borrowed amount. Alternatively, you may choose an unsecured loan that does not require any collateral but, is available at a higher rate of interest.

Here are three benefits of availing a home improvement loan:

1. Affordable

Contrary to popular belief, a home improvement loan is available at an affordable interest rate. Moreover, it is less expensive when compared to a personal loan or other forms of loan products.

2. Tax deductions

Similar to a home loan, home improvement loans offer certain tax deductions on the interest paid against the borrowed amount. However, there are some limitations to such benefits and it is important you check these before availing the loan.

3. Versatility

The borrowed amount may be used for several improvement projects. These include repairs, home extensions, changing the flooring, painting, and much more. The amount may be used for any project related to the structure of your existing home.

Key features of a home improvement loan

1. Quick and simple procedure

Applying for a home improvement loan with Finserv MARKETS, is fast, easy, and convenient and only requires minimal documentation. You can avail loan against property for your home improvement/renovation service with interest rate lesser than personal loan. These documents need to be submitted at the time of application and include income and residential proof, photo identity, property-related documents, and the estimated cost of renovation. The entire procedure is quick, simple and hassle-free. What’s more? Your application is sanctioned within the shortest period of time with loan disbursal within 24 hours of application approval!

2. Attractive interest rates

Home improvement loans today come with attractive interest rates however, it is recommended that you thoroughly research, review and compare the various interest rate offers before making a final decision. It is also important that you understand the various terms and conditions, tenures, prepayment/foreclosure charges as well as interest rate types (floating or fixed) before finalizing your lender.

3. Flexible repayment tenure

Finserv MARKETS brings to you flexible repayment plans that most appropriately suit your financial needs and objectives. Therefore, you can be rest assured that you will have absolutely no liquidity crisis in making timely payments in the form of EMIs.

At the end of the day, everyone wants to go back to a home that’s comfortable. The easy availability of a home improvement loan can help eliminate financial limitations and allows you to renovate your home the way you have always wanted. Moreover, the tax benefits available on the secured loan provides additional advantages, and the best way to finance home improvements is to avail home renovation loan.

Tax benefits of availing Personal Loan for Home Renovation

You can avail a home improvement loan to renovate your home according to your taste and style. The prime benefit of a home improvement loan is that it allows you to upgrade your existing home to a more comfortable living space, customized as per your tastes and aesthetic preferences. These loans are similar to a home loan. While a home loan enables you to acquire a house, home improvement loans are meant for improving your existing home. Home improvement loans have a simple documentation process compared to other modes of financing.

Basic documentation like identity proof, income proof, passport size photographs, a property title deed, etc. are required to avail a loan. So you can get your renovation work started at the earliest without a long wait for your personal loan application to be approved. With a home improvement loan you can avail home loan tax benefit on the interest component, that is, you can avail a deduction of up to Rs. 30,000 per annum for the interest that is paid on these loans. The interest paid on home improvement loans put together qualify for a deduction of up to Rs. 2 lakh. The Rs. 30,000 deduction could result in a tax saving of up to Rs. 10,300 thus lowering your overall cost of borrowing.

Apply for a Personal Loan at Finserv MARKETS today and give your home a wonderful makeover!

Get to know the difference between home loan equitable mortgage and registered mortgage.
Read about how loan EMI is calculated.

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522