HOME RENOVATION LOAN

Each house needs regular maintenance such as remodeling, painting, refurbishing, and many more works to maintain it in good condition. To preserve its beauty and robustness, your home requires maintenance and care. It is therefore essential that you regularly refurbish your house, because natural disasters like rain, storm and normal wear and tear will adversely affect your property over time.

Home renovations can be expensive as material and labour costs increase. Therefore it is often necessary to choose domestic loans for home renovation specifically. You can make use of several loans for the renovation of your home.

FEATURES AND BENEFITS OF HOME RENOVATION LOAN

Some of the main features and advantages of home improvement loans are noted below:

  • High loan-to-value ratio of up to 100% of the repair estimate or 90% of the property value, whichever is lower.
  • Longer tenure of up to 30 years.
  • Attractive interest rates.
  • Generous Tax benefits on home loan.
  • Availability of balance transfer facility (offered by most of the leading providers).
  • Minimal or no documentation for existing customers.
  • Available to both new and existing customers.

HOME RENOVATION LOAN INTEREST RATE & PROCESSING CHARGES

The following table shows the interest rates and processing costs for leading lenders on house renovation loans:

Provider Name Interest Rate Processing Charges*
SBI 6.90% onwards Rs. 2000+Applicable Tax
HDFC Bank 6.90% onwards 0.50% of the loan amount + Applicable Tax
ICICI Bank 7.10% onwards 2.25% of the loan amount + Applicable Tax
Punjab National Bank 7.95% onwards 0.35% of the loan amount + Applicable Tax
Axis Bank 6.90% onwards 1% of the loan amount + Applicable Tax
Canara Bank 6.90% onwards 0.50% of the loan amount + Applicable Tax
Bank of India 8.10% onwards 0.40% of the loan amount + Applicable Tax
YES Bank 9.85% onwards 2% of the loan amount + Applicable Tax
Union Bank of India 11.40% onwards 0.5% of the loan amount + Applicable Tax
IndiaBulls Housing Finance 9.25% onwards 2% of the loan amount + Applicable Tax
LIC Housing Finance 10.05% onwards Rs. 10,000 for loans up to 50 Lakhs
Rs. 15,000 for loans above Rs. 50 Lakhs

HOME IMPROVEMENT LOAN ELIGIBILITY CRITERIA

Some of the prerequisites for applying for a home improvement loan are given here.

Age Minimum: 21years
Maximum: 70 years
Nature of Work Salaried/Self-Employed
Credit Score 750 or above

Furthermore, a variety of other considerations are assessed by the supplier in order to ascertain a customer’s eligibility, such as revenue, liabilities, owned properties, etc.