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Home Improvement Loans

Home renovations calls up for a huge amount of money, even a small kitchen makeover can take one back by couple of lakhs. In such places, home improvement loans come into picture wherein the borrower doesn’t have to shell out all their savings and increase the value of the property at the same time. This loan covers both internal and external home renovations like painting, tiling, flooring, waterproofing and many more. Home improvement loans are different from home construction loans and may offer tax benefits like the latter one.

Features

  • Quick and smooth process with minimal documentation
  • Flexible repayment plans
  • Competitive interest rates

Borrowers must check EMI of their home improvement loan before finalising the loan offer.

Eligibility Criteria

There are certain factors which a lender checks when your loan application reaches him. If you meet those criteria then you are eligible for a home improvement loan from the lender:

Criteria Determinant
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Documents Required for Home Improvement Loans

The lender calls for some documents before disbursing the loan amount for home improvement to the applicant. Here is the list of documents:

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Frequently asked questions

  • Yes, you can get a deduction of up to Rs 30,000 per year on the EMIs of your home renovation loan under section 24B of the Income Tax Act.

  • Yes, you can close the home improvement loan before its tenure ends. This will help you save money on your interest and many lenders allow pre-closure of the home improvement loan without any penalties or nominal pre-closure charges.

  • Home improvement loans cover internal and external home renovations like painting, tiling, flooring, waterproofing, etc which are done to increase the value of the property. New furniture does not increase the value of the property and does not come under the improvement loan. Hence, you cannot buy furniture from a home improvement loan.

  • No, you can only get a home improvement loan for the renovation provided the work is likely to be completed within a year.

  • Both of these loans are short-term loans with pay-day loans typically due on your next payday cycle and have higher interest rates whereas same-day loans have a slighter longer repayment cycle with different terms and conditions.

  • Yes, the government offers subsidies and other benefits to the eligible borrowers of home improvement loans through schemes like Pradhan Mantri Awas Yojana and its Urban and Rural components.

  • Home improvement loans are generally of smaller amounts as compared to home loans and are purely used for renovation and repair purposes whereas home loans are used to buy and build a home.

  • If the actual renovation cost is less than the loan amount sanctioned by the lender, then the surplus amount remains with the borrower. Some lenders have certain policies for the utilisation of the sanctioned amount, so its best to check with the lender for his policies beforehand.

  • Yes, you can transfer your ongoing home improvement loan to another lender for favourable interest and terms through the process of balance transfer. However, do account for the cost associated with this process such as processing fee and prepayment penalty before making a decision.

  • Yes, you can include professional fees or other consultancy charges like fees of interior designers or architects/engineers in your home improvement loan.

  • Get a Personal Loan that fits your needs. Apply for loans from Rs 1,000 to Rs 15 Lakhs with Lowest Interest Rates.
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