Are you planning to take a home improvement loan so that you can upgrade your current home to the advanced design and more comfortable living space? Home improvement loan gives you the freedom to customize your house as per your tastes and aesthetic preferences. These loans are similar to a house loan. While a home loan enables you the freedom to acquire a house, home improvement loans are meant for improving the home that you already own.
India is a country of festivals and events. Whether it’s Diwali, Ganesh Chaturthi, Lohri, Onam, or events like marriage, a new member in the family, retirement, etc. the first thing that comes to our mind is how can we renovate the home to make it look the best.
But renovating a home is an expensive affair and includes a lot of financial expenditure which you need you to plan for. A Home Improvement Loans can help a homeowner bear this expenditure.
Let’s first understand how does home Improvement loan use?
Home improvement loan can be used for a range of activities in your home such as renovation, extension, painting, repairs, flooring, etc. you can use your loan funds for any work that pertains to the structure of your home.
The next question that pops in our head is the interest rate on home improvement loans?
There are many companies that claim to give you the best home improvement loan rates, but as a smart consumer, it only makes sense first to check the details of every company before you make a final call. There is a home equity loan calculator on the websites of these housing finance companies, which will help you in gauging what will be the interest rate based on the principle on which you are taking the loan.
Can you get a home improvement loan even if you earn in cash?
Yes, unlike a decade ago today there are many good housing finance companies that give home loans to people who earn in cash, you can avail of a loan for home improvement loan also from any of such companies. The interest rate for informal income varies between 17% to 18%, and Administrative and Operational Costs of up to 3% will be charged to applicants.
Documents required to apply for Home Improvement Loan include:-
-Application form with all required details filled in.
-Identity proof such as Pan Card, Voters ID Card, Passport.
-Address proof such as electricity bill, ration card.
-Income proof documents, if available.
-Bank passbook or Bank Statements.
-Copies of the property papers and the construction estimate.
Hope this article will be helpful for those looking to renovate their home and are looking for options for financial assistance. If you have any query let us know in the comments.