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Living in your dream home goes beyond just owning one. Turning your house into your home may need a little sprucing up to suit your family’s needs. This is when you can apply for a home improvement loan . A home improvement loan can be used to cover the costs of refurbishing or renovating your space. While a home loan is sanctioned to buy a house, a home improvement loan is used to alter the already existing space as per your requirements.Right from paying the architect to procuring raw material for the construction, home improvement loans provide the flexibility to cater to multiple costs of remodelling. The only limitation is that you cannot use the loan towards movable items such as furniture. While a single applicant can also apply for the loan, if the home is jointly owned with your family members, all owners shall have to apply for the loan together. Depending on your profile, you can opt for loan tenure for up to 15 years. Finally, the market value of your property determines the loan amount that shall be sanctioned for the project.While you can always dip into your savings to fund your renovation plans, home improvement loans have certain financial benefits that allow you to keep your savings for a rainy day instead.
- Duly filled and signed application form
- Proof of identity, employment, and residence. PAN card is mandatory for loan above ₹10 lakhs
- Bank statements for the last six months
- Original title deed of the house
- No-encumbrance certificate
- Cost estimate of the project by an architect
- Lower rate of interest: Home improvement loans are usually available at the same rate of interest as home loans. This makes them an attractive offer, as most people end up opting for personal loans to renovate their homes that have a higher rate of interest in comparison.
- Basic documentation: Home improvement loans need very few essential documents. In case you have already taken a home loan from the same lender, the documentation is further simplified. Typically, you need to submit the following papers:
- Quick processing: With only essential documents required for the loan , the time taken to process the application is also considerably less.
- Tax benefits: Home improvement loans provide tax benefits on the interest element. Under Section 24, a deduction of up to ₹30,000 can be availed per annum, against the interest paid towards the loan amount.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
