Personal loans in India are becoming a popular means to build one’s credit. Getting a home renovation loan for your home is easier than you think and a great option if you do not want to spend all your savings.
What is a home improvement loan?
A house renovation loan is taken to pay for home renovations or improvements in your home. Leading banks and NBFCs are more than willing to give out loans for various reasons. Personal loans do not need collateral and are often used for purposes that are unique to the individual. For instance, a home renovation loan is becoming popular among people who want to give a new look to their homes. Whether it is to make minor or long overdue changes, you can take advantage of financial institutions that offer home improvement loans.
You can use Buddy Loan app for the best personal loan offers for your dream home renovation. Make sure to download our app from the google play store.
Checklist for a home renovation loan.
A home renovation loan can cost anywhere from thousands to lakhs, depending on the renovations planned for your home, and in a pool of banks, NBFCs, and plenty of offers, it can become overwhelming to know which one is right for you. This article will help you navigate and find the best loans for you.
Before applying for a home improvement loan, you have to know a few things. For instance-
Tax Benefits- The Income tax act, 1961, under section 24, allows an interest component on your home improvement, making you eligible for tax benefits of up to 30,000 per annum.
Eligibility – The eligibility factor is important in knowing where you stand while getting a loan. You are assessed based on your credit score, income, and age. A Buddy score can help you understand if you are eligible for a home improvement loan.
Interest Rates – When making any financial decision concerning taking loans, it is important to understand the interest rates and pick the best ones. Interest rates can start from 8% and go on to 15% based on different banks. You should be able to choose manageable interest rates along with your monthly expenses.
Loan Tenure – The tenure of your loan changes based on your interest rates. Most lenders offer tenure of up to 30 years, which might change depending on your age.
How to get a home improvement loan.
The procedure for a home improvement loan differs from one bank to another. Apart from the features mentioned above, getting a loan is a fairly simple and quick process.
Steps for getting a home improvement loan-
- Fill up the form
- Document verification
- Background check
- Payment of other fees
- Loan Approval
- Other verifications and documents.
These steps are a gateway to the actual process; depending on the bank, the process, time, and other features might differ.
Also Read – Still not able to make a decision? We have curated an article with all the information you need. Compare features and facts on how to get home renovation loans.
Home renovation projects might seem like a lot, but with the right help, it can be a fulfilling experience; using the Buddy loan app can minimise your burden for getting the best home improvement loan and navigating your renovations smoothly.