Home Improvement Loan

What is Home improvement Loan?

The owner of the house (for which Home Loan is ongoing) May apply for home improvement loan. The purpose of taking the loan is home renovation. When asked for, your home loan bank will offer you this loan.

Why home improvement loan?

Assuming, you have made up your mind to renovate the dream home and there is no pleading Mrs.

Buying a home stretch your financial limits and renovation is costly. If you have already exhausted asking your family/friends and thinking of personal Loan from Bank? Stop!

Personal loan entails higher interest rate for shorter duration. You can approach your home loan bank and ask details about ‘Home Improvement Loans’ for renovation purposes.

Why Do that?

Home Improvement Loans entail lower interest rates than personal loan and higher loan tenure for lower EMI.

In short, it’s a better deal than taking personal loan.

The interest rate is at home loan interest rate. The Loan amount eligibility increases with each repayment of home loan. Home improvement loan tenure can go up to 15 years, meaning lesser EMI when compared to personal loan of maximum tenure of 7 years.

Tax Exemption

Up to 30,000 under Section 24b, but limited to/under home loans exempt of 2 Lakhs.

There is No prepayment charges on home improvement Loans. (Choose Floating interest Rate )

If you are lazy then, taking home improvement loan is still better as it would require lesser documentation.

What is covered under Home improvement loan?

Below, is the list of things that comes under home improvement loan? It is important to stick to and remember at least one of them. This is the answer to, when Bank Agent asks “Why need loan” and Not ‘None Of your..’

1). Property Renovation.

2). Wood Work, False ceiling, Kitchen Work

3). Repair Work, Adding a room

4). Plumbing, Tiling, Flooring & Electrical works

5). Painting, Waterproofing,

Eligibility considerations for Top up Loan?

Existing home loan customers of the bank are eligible for top-ups. One can be eligible for top up in 6-18 months of paying EMIs on time and maintaining good credit records with the bank.

[Source: https://loaneasy.in/home-improvement-loan/]