Everyone desires a beautiful home that they can be happy in. Your home reflects who you are. As you build your family or grow in your life, your desire for a beautiful and secure home increases. However, building funds to make your dream home a reality can take years. This is where a renovation loan comes in. You can take a loan to renovate, make any major repairs, or even reconstruct your home.
Advantages of Home Renovation Loan
If you are looking to repair or renovate the structure of your existing property, home construction loans can give you the funds you need to undertake such repairs. These loans also come with longer loan repayment tenures, so you can make repayments in small EMIs, based on your income ability. There are many other benefits of getting such a home loan.
When you take a home loan, you can get up to ₹1.5 lakh tax deductions on the loan expenses, such as principal amount, registration, and stamp duty fees, under Section 80C of the Income Tax Act. And when you repay your loan, you can avail deductions for interest paid, under Section 24. If you are a joint homeowner, you can get up to ₹ 1.5 lakh each as income tax returns.
Home loans of this type require only the basic documents for age and income proof. And when you have these documents ready and submitted, getting a loan disbursal is just a matter of time.
A home loan taken for the purpose of repair or renovation has lower interest rates than a typical personal loan you take for the same purpose. A home loan like this is secured against your house, so it carries lower interest. Personal loans are usually unsecured, which means a higher rate of interest.
Loan for all homeowners
You don’t have to be a salaried person to avail a home loan. Home improvement loans can be obtained by government employees, corporate professionals, as well as self-employed individuals like doctors, lawyers, CAs, traders, and small business owners.
Home improvement loans have a longer repayment tenure. Sometimes as long as a home loan, depending on the nature of the home improvement. Longer loan tenure equals smaller EMIs.
Many lenders can give you as much as 90% of the home improvement cost. So now you don’t have to worry over a substantial down payment for any expenses incurred.
Repairs, Renovations, and more
No matter how large or small your financial need is, you can get a home renovation loan. This loan can be used for various types of repairs or renovations, such as painting, tiling and flooring, waterproofing, plumbing, and sanitary work.
Eligibility Criteria for a Home Renovation Loan
Everyone who owns a home or residential property can apply for a home loan. However, there are certain terms applicants need to meet to be eligible for a getting a home loan. Following are the common eligibility criteria for a renovation loan.
- Age should be between 21 to 70 years
- Income should be at least 15,000 a month
- Salaried individuals should have at least 3 years of work experience
- Self-employed people should have maintained their practice or business for at least 5 years
Documents Required for a Home Renovation Loan
Your KYC is the most important part of applying for a home loan. Banks will need specific documents from applicants to determine eligibility and income proof. The documents required will vary from lender to lender, but there are some common documents that will always be a part of your home reconstruction loan application.
- Loan application form
- Age proof, like the Aadhar card
- Residence proof, like the most recent light bill
- Education qualifications
- The last 6 months’ salary slips as income proof
- Property documents
- Documents for approved reconstruction plan or blueprints
Getting a beautiful, aesthetically-pleasing house is simply easier with a home loan. You don’t have to worry about building a corpus to plan for renovations. Just avail a home loan and repay it on your terms. Every person who owns residential property can get a loan to renovate or reconstruct their home. And, you can share loans with a close family member if you want a larger loan amount. Maybe you are interested in Plan your home loan balance transfer by considering these factors