Home Renovation Loans: What Are They and How Do They Work

If you live in India and own a home, you would know that a home is more than just an asset and brick-and-mortar. It is a reflection of your social and financial status, pride and accomplishment. Your home is a safe haven that gives you peace of mind, knowing that your loved ones have a safe and secure place to live and thrive. 

The aesthetic beauty and comfort are just as important as the location of your home and its construction quality. The ambience and condition of your home not only create a first impression on the onlookers but reflect your personality. And no matter how well you design your home, you will have to do some renovation work at some point. It could be as simple as applying a fresh coat of paint, redoing the décor completely, or doing some repair work. 

Today, with the easy availability of home repair loans or home renovation loans, you do not need to delay or wait for long to carry out the repair work in your home. A home renovation loan is a great way to get the funds you need to modify, renovate or refurbish your home. It allows you to upgrade your home, change the décor, and create a more comfortable and ambient living space to suit your taste and aesthetic preferences. 

 

Let us know more about home renovation loans. 

 

Home Renovation Loan – Eligibility Criteria

Home renovation loan eligibility requirements may vary from one lender to another. However, most of the reputed financial organisations like India Shelter have simple eligibility criteria, including:

 

• Property ownership

You must be the legal owner of the property that you want to refurbish or undertake any renovation project. 

 

• Property value

The value of the property you own must meet the lender’s specified minimum value requirement to get the loan approval. 

 

• Age limit

You must be at least 18 years old, and the maximum age limit is 70 years when applying for the loan. 

 

• Income 

This is one of the most important eligibility requirements. You must have a stable and regular income source to be able to repay the loan on time. 

 

• Credit score

The maximum amount you can borrow, as well as the home improvement loan interest rates, will greatly depend on your credit score. If your credit score is high, you can borrow a higher amount and get a loan with more favourable terms and conditions. 

However, even if your credit score is (-1), you can be eligible for funding. However, the interest rate on the loan may be higher than others. 

 

Home renovation loan – documents required

Like any other form of credit, when you apply for a home remodelling loan, you must comply with certain documentation processes and submit certain important papers to the lender. These include:

 

• Identity proof – passport, voter ID, Aadhaar card, driving license (you can submit any one of these)
• Address proof – passport, utility bills, Aadhar card (you can submit any one of these)
• Income proof – salary slips, Form 16, bank account statement reflecting salary/business income credit, audited business financial documents
• Property-related documents – Title deed, proof of no encumbrances on the property
• Other documents – application form duly filled and signed with a passport-size photograph, a cheque for paying the processing fees

 

Home renovation loan – features and benefits

When you apply for home renovation loans or loans for home remodelling, apart from getting the funds you need for undertaking the home improvement work, you can enjoy a wide array of features and benefits, including:

 

• Affordable interest rates

Today, most lenders in India, like India Shelter, offer home renovation loans at competitive and affordable interest rates. The low interest rate automatically translates to affordable EMIs (equated monthly instalments), allowing you to easily repay the amount without compromising on your other financial goals. 

 

• Quick loan approval

Since all modern lenders offer digital or online services, you can apply for a loan from the comfort of your home or office at your convenience with just a click of a few buttons. Also, to give potential borrowers a hassle-free borrowing experience, financial organisations have a seamless and fast approval process, allowing you to get access to funds quickly and start the renovation work as soon as possible. 

 

• Balance transfer facility

Balance transfer essentially means transferring your existing loan from your current lender to a new lender at a lower interest rate. So, if you have already availed of a home renovation loan and feel that the current lender is charging a high interest rate, you can transfer the loan to India Shelter and repay the balance amount at a lower interest rate and also get better repayment terms. 

 

• Dedicated customer support

All financial organisations nowadays have a dedicated customer support system to help existing and potential new customers get answers to all their queries as well as assistance through the loan application process. 

 

Conclusion

Applying for a home renovation or home improvement loan is an excellent way to get the funds needed to understand renovation work in your home. Lenders like India Shelter offer such loans at attractive interest rates and have simple eligibility criteria. 

However, as a smart loan borrower, you must carefully read the terms and conditions mentioned in the loan agreement before you sign the papers to avoid any legal issues in the future.