A home owner’s responsibility does not end with managing funds to purchase a home. Each home requires periodic maintenance, including painting and restoration, to keep it in a good state and protect it from natural calamities. Depending on the amount of work involved and the need to repair, one can estimate the cost of home renovation.
However, with financial products such as a home renovation loan, individuals can easily fund these expenses without utilizing their savings.
Steps to apply for a home renovation loan
Individuals willing to avail this financial product can follow the process mentioned below:
Step – 1 – Visit the official website of the chosen lender
Step – 2 – Navigate to the section on home renovation loans
Step – 3 – Enter personal and financial details and complete the loan application process.
However, home renovation loans come with stringent eligibility parameters. Alternatively, individuals can apply for a personal loan and fund their home renovation projects.
Home renovation loans are hassle-free, low-cost borrowing that allows homeowners to remodel, renovate, update, or repair their homes. This specific tailor-made financial product is the easiest medium to transform their home.
As individuals are aware of the basics of a home renovation loan, they must learn about its features and benefits.
Features and benefits of a home renovation loan
Below are discussed the essential features and benefits of availing of a home renovation loan:
- Flexibility of use
Individuals use a home renovation loan for many purposes, for instance, renovation, flooring, painting, extension and many other activities. In short, individuals can opt for a home renovation loan to finance any work pertaining to the structure of their home.
- Competitive interest rate
Home renovation loans come with a reduced interest rate. The interest rate is a crucial factor that decides the total cost of borrowing. Therefore, when individuals avail of a financial product at a competitive interest rate, they can reduce the overall cost of borrowing. Reduction in borrowing costs helps manage finances for your home renovation efficiently.
Eligibility criteria of home renovation loan
The eligibility criteria for a home renovation loan may vary from one lender to another. However, the generic eligibility parameters that loan applicants have to fulfil are the following,
- The applicant’s age must range from 21 to 67 years
- Salaried or Self-employed individuals can apply for a home renovation loan,
- Applicants must have a credit score of 750 or above
- Must be residing Indians
While determining the eligibility of an applicant, financial institutions assess the applicant’s income, liabilities, and many other things before sanctioning a loan.
Document requirements for a home renovation loan
Individuals can give their homes an instant makeover with a home renovation loan. For a successful application, the following is a list of documents that individuals have to submit:
- Duly filled application form
- Identity proof (Passport or Voter ID or Driving license or PAN card)
- Age proof (Birth certificate or Passport or Driving license or 10th class mark sheet)
- Address proof (telephone bill or electricity bill, water bill, Passport or Aadhaar card or property tax receipt or Voter ID)
- Income proof/bank statement
- Property documents
- Estimated repair cost quotation
Note: This list is indicative. Financial institutions may ask for other documents as per requirement.
Remember, there are different costs to consider while planning a home renovation. Hence, borrowers must evaluate the required money for home renovation and apply accordingly as per their eligibility.
Relaxed eligibility, faster loan approval, quick disbursal, and multiple usages have made personal loans a popular financing option among borrowers.
Renowned financial institutions offer attractive and lowest personal loan rates and guarantee quick loan disbursal. In addition, financial institutions also provide pre-approved offers to make the loan availing experience hassle-free. These offers are available on various financial products, including personal loans, credit cards, business loans, etc. Individuals can check their pre-approved offers by entering their names and contact details.
A home renovation loan is an ideal credit option that caters to the need of homeowners looking for financial assistance to renovate their houses. With easy access to this financial product, homeowners can avoid financial burdens. On top of that, the availability of tax benefits helps bring down the overall cost of borrowing.