Home Renovation Loan

Last Updated on May 23, 2024 by Ali Hamza

Home renovation is an excellent idea for various reasons. Apart from increasing the homeowner’s quality of living, it also increases the property’s net worth and resale value. However, one downside is that renovating a home is expensive, depending on the type and extent of the renovation. While many save money to cover the expenditure in cash, others take a Home Renovation Loan to make it possible. The good news is that numerous NBFCs have emerged in India, providing Personal Loan for Home Renovation to cover the expense upfront. We will help determine the best loan option based on the crucial information you must know before applying.

Loan Amount

Deciding on the loan amount is the first step toward taking a Home Renovation Loan. For that, call experts to make an estimate based on the things to be done. Reach out to the vendors, estimate the total renovation cost, evaluate the available savings, and calculate the loan amount required to fund the project. 

Interest Rates

Personal Loan interest rates depend on various factors crucial to financial institutions. These include the applicant’s income, loan amount, repayment tenure, credit rating, debt-to-income ratio, etc. The better the eligibility, the lower the interest rates. Therefore, compare loan offerings of different lending institutions and finalize the best one. A difference of even a few percentage points significantly affects the total interest outgo.

Eligibility Criteria

Eligibility criteria are the primary factor finance providers consider while sanctioning a loan. Some standard components include the applicant’s age, income, employment, credit rating, FOIR, and other parameters. Since the eligibility conditions vary between finance companies, it’s wise to check the preferred lending institution’s website and thoroughly understand their requirements before you apply for an instant loan. Also, use a Personal Loan eligibility calculator to estimate loan eligibility and amount. This will help make a well-informed decision. 

Documents Required

After understanding the loan terms, check the relevant documents required for the application. These include identity proof, salary slips, income proof, residence proof, ITR, bank statements, etc. Selecting a financial institution that supports hassle-free and paperless documentation is always the best. Therefore, keep the documents ready to provide them when required for fast Home Renovation Loan approval.

Repayment Term

Another crucial thing to remember is the loan term. home renovation loans are basically Personal Loans that come with a minimum and maximum repayment term. Using a Personal Loan EMI calculator, loan seekers can select a loan term with EMIs they can conveniently afford each month. It helps calculate the repayment carefully, enabling the borrowers to repay the loan with interest on time. The tool calculates the EMI based on the loan amount, interest rate, and tenure. Estimate and choose a term with manageable monthly EMIs.

Each home requires maintenance work like painting, remodeling, restoration, and repairs for proper upkeep. Thus, taking a Home Renovation Loan helps refurbish the house as necessary to keep it from looking unkempt and shabby and increase its value simultaneously. Nearly everyone will agree that home renovation is one of the greatest ideas. But let’s face it; it is also very costly. That is why you need a Home Renovation Loan to get the required funds. Here is some crucial information every loan seeker must know.If you think you need a home renovation, it can be difficult to know what to do.

There are many lenders that offer a home renovation loan, but they’re not all the same. Find out what it takes to get approved and what kind of terms you should expect when taking out a home renovation loan. With a home renovation loan, you’re able to make improvements on your property and prepare it for sale. A renovation loan is an easy way to improve the value of your home and get the most bang for your buck when selling.

Apart from this if you are interested to know more about Benefits of Using a Home Loan EMI Calculator then visit our finance category.