Home Improvement Loan

Your home is a reflection of your personality, but keeping it modified in accordance with ever-changing trends might increase your financial burden. This is where a Home Improvement Loan comes into effect. This financing allows you to implement changes or modifications in your house as per your desire without worrying about your expenses. You can easily obtain this loan through any financial institution.

However, since each financial institution has its distinct set of conditions and interest rates, you must conduct some research in order to choose the best alternative among several Home Improvement Loan options available in the market.

To know more, let’s have a look at its important aspects including benefits, eligibility criteria, and so on.

Key Features & Benefits – Home Improvement Loan

Here are the salient features and benefits of this loan.

Easy Eligibility: This loan comes with simple eligibility criteria. To qualify for this loan, you are required to be a salaried or self-employed person. Additionally, whether you are living individually or with a joint family, you can apply for this loan. However, in the scenario of a joint family, if the property has multiple owners, they all are required to apply for this loan.

Available for All Homeowners: Whether you want to renovate or modify your apartment, bungalow, or any other residential property, you can apply for a Home Improvement Loan as it is available for all homeowners.

Flexibility to Use: This loan is not restricted to modification use only. You can also use this loan for other purposes like renovating the whole house, exterior or interior repairs, water-proofing & roofing, flooring, an extension of any area, improving your kitchen, and many more.

Minimal Documentation: When compared to other forms of finance, these loans need comparatively less documentation. If you get it from the same institution where you got your Home Loan, all you need is basic documents like identity proof, income proof, photographs, and so on.

Quick Loan Disbursal: These loans are approved promptly since the paperwork is minimal and straightforward. As a result, you don’t have to wait for weeks to get it approved. You can get your house modified/upgraded in just a few days only.

Competitive Interest Rates : Financial institutions offer low-interest Home Improvement Loans, which makes them inexpensive and affordable in nature. This loan is usually available at the same interest rates as a Home Loan.

Tax Benefits: Tax advantages are one of the most appealing features of this financing. As per Section 24 of the Income Tax Act, you can claim up to Rs. 30,000 in tax advantages every year on your Home Improvement Loan. However, this deduction falls within the Rs. 2 Lakhs limit for loan interest payments on self-occupied residences.

Flexible Repayment Options: You can repay the loan in easy monthly installments. While acquiring this loan, you will get the opportunity to choose the payback period as per your suitability which will lessen your financial trouble.

Eligibility Criteria for Home Improvement Loan

Before applying for a Home Improvement Loan, you must be aware of the eligibility criteria. Below are the details about the same.

• Your age must be between 20 to 65 years.

• This loan is available for both residents and non-residents (NRI) of India.

• Your credit score should be above 750.

• You must be a salaried/self-employed person.

Apart from these, lenders also check your credit history. Your credit history helps in evaluating your financial habits more accurately as it shows your outstanding bills, repayment history, EMIs, etc.

Documents Required for Home Improvement Loan

Following is the list of documents that you must have in order to avoid rejection of your loan application.

Interest Rates & Charges for Home Improvement Loan

Each financial institution has different processing charges and Home Improvement Loan interest rates. Below is the table that will help to learn more about it.

Disclaimer: Interest rates are subject to change as per the bank’s policies