Why Should You opt for a Home Renovation Loan?

Your home is your haven. It is a safe where you feel the most relaxed, happy, and safe, right? Also, your home doesn’t just provide a roof over your head, but it also reflects your personality, social status and accomplishment. But even your safe haven may need renovation at some point or the other. You may need to redo the paint, fix the broken ceiling, or add a new room to welcome the new member in the family.

Home renovation may seem to be an exciting prospect but at the same time it can be quite overwhelming. Not to mention, some renovation works can be costly. This is where a home renovation loan comes into the picture.

A home renovation loan, as the name suggests, is a kind of credit that you can avail from any bank or NBFC (non-banking financial company) of your choice to repair, renovate or refurbish your home and give it a facelift. Applying for a house renovation loan is a financially feasible option rather than utilising your years of hard-earned savings to give your home a new look as you no longer have to wait for a few years to accumulate sufficient funds.

Let us look at more reasons why you must opt for a home renovation loan:

 

Affordable interest rate

One of the important reasons why you must opt for a home renovation financing is that it allows you to get the credit at an affordable interest rate. Nowadays, many lenders offer this kind of loan at the same interest rate as a home loan. This means, the EMI is also affordable and you can repay the amount without any hassles.

 

Tax benefits

Apart from the low home renovation loan interest rate, you can enjoy tax benefits on repaying the interest component of this loan. You can get a deduction of up to Rs. 30,000 under Section 24 of the Indian Income Tax Act, 1969. Thus, you reduce your overall annual tax liability.

 

Minimal documents required

Today, many lenders have a simple home renovation loan eligibility and documentation requirements. This helps you to get the loan you want easily and without any hassles. Also, since the lender offers digital services, you can comply with the documentation online, which eliminates the need for carrying physical papers.

To get this type of credit, all you need is a few simple documents like identity proof, residence proof, quotation indicating the actual repairs cost, income proof, etc. Once you submit the necessary papers, the lender will verify the same and sanction your loan.

 

Quick loan approval and processing

Typically, home renovation loans are processed quickly as the documentation is minimal. So, you can get started with the home renovation work immediately without waiting for a long time to get your loan application approved and getting the disbursement.

 

Flexibility

Another significant benefit of home renovation financing is that you can use the credit for any purpose you want. You can change the entire interior décor, redo the flooring and ceiling, buy new and modern kitchen accessories, upgrade the home furniture or instal home automation system or build a new room, renovate the toilet and add new lightings, etc.

The lender does not have any restrictions on how you use the money. All you have to do is submit a quotation from the home renovation contractor enlisting the details of repair/modification work you wish to undertake. In addition, you also get the flexibility to choose the loan amount, and repayment tenure to suit your repayment capacity.

 

No need for collateral

Unlike home loans where your property/home acts as a security against the amount you borrow, you need not pledge any asset to get a house renovation loan. Thus, you need not risk losing the property, provided you repay the home renovation loan on time till the end of the loan term or until you repay the full amount.

 

To Conclude

Getting your home renovated not only uplifts the beauty of the home, but also improves your mood and lets you relax better while you are at home. Also, it creases the overall value of your property. This means you can get a better price for the home if you wish to sell it.

Getting a home renovation loan is hassle-free to fund the repair work you want to undertake and transform your home, while enjoying the benefits discussed above.