Buying a house is only the first step to realizing the dream of living in a home that you can flaunt to the world. Everyone desires a home that people will admire when they see. In addition, you don’t have to spend a fortune to live in a beautiful home, as making the right financial decisions before you begin. Your renovation can make a lot of difference.
Many homeowners decide to transform/renovate their homes right before a festival, marriage or some special event in the family. Generally, home improvement may include painting, internal or external repairs and modification, and remodeling. In some cases, it may mean adding an entire floor or modifying a kitchen, bedroom or bathroom, or adding a new room. Whatever the construction or remodeling needs, it’s an important financial decision and requires good planning to pull it through without putting an extra burden on your finances.
Now let’s check out why going for a home improvement loan is a good idea to give your home a face lift and impress your friends, families, and neighbours while seeing your foes turn green with envy.
Why Go for a Home Improvement Loan to Upgrade Your Dream Home
Longer Tenure & Lower Interest Rates
Remember that home improvement loans are only disbursed to the registered owner of the house. If the registered owner is above retirement age, you can opt for a Bajaj Finserv Personal Loan at Finserv MARKETS, which can be taken in the name of any other earning family member.
You can get an easy, online personal loan at very attractive rates on Finserv MARKETS. If you take into consideration other hidden charges and time-consuming formalities to get a home renovation loan from other banks and NBFCs.
Home improvement loans are available for a maximum tenure of 15 years and banks usually fund 80% of the estimated home renovation costs.
Another benefit of a home improvement loan is tax relief, which is not available with a personal loan. Home improvement loans are tax-exempt under Section 24(b) and you will be eligible for tax deductions up to Rs. 30,000 per annum on the interest paid on the loan.
No Prepayment Charges
As per an RBI circular from 2014, banks or NBFCs cannot levy foreclosure or prepayment charges on loans against property (home improvement loans are one of them) provided you have taken the loan on a floating rate. So, insist on a floating rate of interest when you apply for a home renovation loan.
Increases Your Property Value
Of course, you don’t renovate your home to sell it but celebrate it. However, home improvement not only adds style but value to your property. When the time comes for you to perhaps move into a newer or bigger home, you can sell the home at a premium cashing on the rise in the real estate price.
Flexi Loans for Unexpected Expenses
No matter how astute your financial planning for the renovation, costs can increase and sometimes spiral out of control. Your architect, plumber, electrician, painter or contractor will only give you an estimate – and sometimes you too get carried away in getting additional work or remodeling done as the work progresses.
Flexi loans are lifesavers in such situations. At Finserv MARKETS, you can avail a Flexi loan so you don’t have to deal with inflated EMIs. You’ll be able to borrow multiple times from the sanctioned limit while paying interest only on the amount you use.
How to Apply:
Check your CIBIL credit score and ensure that all your property documents are ready. If the home is co-owned by you, both co-owners will have to jointly apply for the home improvement loan. With a Bajaj Finserv personal loan at Finserv MARKETS, you get quick, hassle-free, flexible and low-cost funds to cover your home improvement costs.
The following documents are required for a home improvement loan:
- Proof of address and identity
- PAN card
- Bank statement for the last 6 months
- The original title deed of your home
- Non-encumbrance certificate to show there’s no legal or financial liability on the home
- An estimate of the home improvement work by an architect or engineer
- Your passport photo
If you are planning to do a home makeover, let Finserv MARKETS help you get the best deals with minimum documentation, faster processing and attractive interest rates on Bajaj Finserv Personal Loan for Home Renovation.
Also, read about personal loan tax benefits.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!