In the modern era of ever-changing trends and relentless inflation, modifying/redesigning your home may put you under additional financial strain. That is where the Home Renovation Loan/Home Improvement Loan comes into the picture. It caters to the need of customers looking for financial assistance to upgrade/renovate their house.
Check Also: Home Loan
Table of Contents
- Features & Benefits
- Interest Rates
- Documents Required
- How to Apply for Home Construction Loan
Features and Benefits of Home Renovation Loan
Mentioned below are some of the salient features and benefits linked with Home Improvement Loan.
- High loan-to-value ratio of up to 100% of the repair estimate or 90% of the property value, whichever is lower
- Longer tenure of up to 30 years
- Attractive interest rates
- Generous Tax benefits on home loan
- Availability of balance transfer facility (offered by most of the leading providers)
- Minimal or no documentation for existing customers
- Available to both new and existing customers
Check Also: HDFC Home Improvement Loan
Home Renovation Loan Interest Rate & Processing Charges
The table below shows Home Renovation Loan interest rates and processing charges for the leading providers.
|Provider Name||Interest Rate||Processing Charges*|
|SBI||8.35% onwards||Rs. 2000+Applicable Tax|
|HDFC Bank||8.00% onwards||0.50% of the loan amount+Applicable Tax|
|ICICI Bank||11.25% onwards||2.25% of the loan amount+Applicable Tax|
|Punjab National Bank||7.95% onwards||0.35% of the loan amount+Applicable Tax|
|Axis Bank||9.25% onwards||1% of the loan amount+Applicable Tax|
|Canara Bank||8.10% onwards||0.50% of the loan amount+Applicable Tax|
|Bank of India||8.10% onwards||0.40% of the loan amount+Applicable Tax|
|YES Bank||9.85% onwards||2% of the loan amount+Applicable Tax|
Check Also: Home Loan Interest Rates
Home Improvement Loan Eligibility Criteria
Here are some of the pre-requisites to be eligible to apply for a Home Improvement Loan.
Maximum: 70 years
|Nature of Work||Salaried/Self-Employed|
|Credit Score||750 or above|
Over and above this, there are several other factors like an applicant’s income, liabilities, assets owned, etc., which are evaluated by the provider to determine the eligibility of a customer.
Check Also: Home Loan Eligibility Criteria
Following are the documents required in order to apply for a Home Improvement Loan.
- Duly filled application form
- Age proof
- Income proof/Bank Statement
- Address proof
- Property documents
- Estimated repair cost quotation
Note: This list is non-exhaustive. Additional documents may be required based on the applicant’s profile and the provider’s requirement.
Check Also: Home Loan Documents Required
How to Apply for Home Renovation Loan
Customers can apply online for Home Renovation Loan through Paisabazaar.com by simply following the below-mentioned steps.
- Go to Home Renovation Loan section at paisabazaar.com
- Fill out the required field and agree to the given terms & conditions
- Enter your personal and loan-related details
Now, few eligible loan options will appear. Compare and apply for a home loan that suits your requirements.
Q1. How is the EMI calculated?
The monthly EMI depends on the loan amount, interest rate, and repayment tenure. You can use Paisabzaar’s EMI calculator to calculate Home Loan EMI in advance before applying for a Home Renovation Loan.
Q2. What is the security required to avail Home Renovation Loan?
The security required for Home Renovation Loan may vary from lender to lender. However, in most cases, the property to be renovated is kept as collateral.
Q3. What are the tax benefits linked with Home Renovation Loan?
Under Section 24 of the Indian Income Tax Act, 1961, Home Renovation Loan provides tax benefits on the interest component. You can avail a deduction of up to Rs. 30,000 per annum.