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.
