Home Renovation Loan

A home renovation loan is one of the best choices to furnish your home with the dream interiors you have always wanted. You can use the funding for essential repairs, upgrading the structure of your house or expansion. 

Home renovation loans come with various features like affordable interest rates, tax benefits, high Loan-to-Value (LTV) ratio, etc. However, before starting the application process, you must check the eligibility criteria and document requirements. 

You also should compare different options and offers on home improvement loans. This helps ensure that you select the best option and make the most out of your loan. 

Read on to know the features, eligibility criteria, and other details about home renovation loans. 

Here are some of the prominent features of home renovation loans:

• Affordable Interest Rates

The home renovation loan rates are quite affordable, helping you save on your monthly outgo.

• High LTV Ratio

Some lenders offer up to 100% of the estimated amount that you quote. 

• Flexible Loan Tenure

You can select a repayment tenure for up to 20 years. 

• Tax Benefits

You can claim tax benefits on your home renovation loan under Section 24(B) of the Income Tax Act, 1961. 

• Balance Transfer Facility

Transfer the remaining credit amount to a new lender offering lower interest rates.

• Minimal Additional Charges

Lenders levy nominal extra charges ranging between 0.25% and 2.00%.

While the the eligibility criteria for a home renovation loan varies across lenders, here’s a general list of parameters borrowers may have to meet:

• Age: You must be between 18 and 65 years of age

• Employment: You must be either a salaried or self-employed individual

• Citizenship: You can apply if you are an Indian citizen or a Non-Resident Indian (NRI)

• Credit Score: Your credit score must be above 700

• Residence: You can apply for a loan for your permanent or rented residence, where you have stayed for a minimum duration of 12 months before applying

• Income and Employment: You must have a stable source of income

Here are the documents you have to submit with your home renovation loan application:

• Identity Proof: Aadhaar card, PAN card, driver’s licence, passport, or voter ID

• Address Proof: Utility bills, Aadhaar card, driver’s licence, passport, or voter ID

• Application Form: Duly filled application form with details mentioned on documents, with 3 passport-size photos

• Income Proof for Salaried Individuals: Salary slips / salary certificate of the past 3 months, bank statements of the past 6 months, ITR, and recent Form 16

• Income Proof for Individuals in Self-Employment: Profit / loss statements and balance sheets with schedules of the entity of business (for the past 3 years) validated by a CA, ITR for the past 3 years, and individual bank statements 

Note that NRIs have to provide similar documents, such as a copy of employment contracts, quarterly salary certificates and statements of bank accounts for the past 6 months. 

On Bajaj Markets, you can choose from some of the leading lenders in India. To apply, follow these steps:

• Click on the ‘APPLY NOW’ option on this page

• Select your requirement and profession

• Enter your mobile number and date of birth

• Check your offers and choose one as per your needs

• Upload and verify documents

Once you complete the application, you will have to wait for processing and approval. Upon approval, you will receive the sanctioned loan amount in your bank. You can apply either individually or jointly if you want to apply with co-applicants. 

Getting a home renovation loan can be a smart decision, but you must plan ahead for it. Check recent interest rates, eligibility criteria and documentation to make the borrowing process easy. 

For a convenient home renovation loan application process and other benefits, apply on Bajaj Markets. With a simple digital application, you can get a loan at affordable interest rates and enjoy various other benefits.