Nowadays, buying a house is not the only realty expense people incur. Extensive upgrades to home interiors, contemporary woodworking, repairs, and occasional revamping of exteriors can cause a dent in the savings. That’s why people are readily opting for home renovation loans in India. Let us understand what home renovation or improvement finance is and what it entails.
What is a home renovation loan?
Home renovation or home improvement finance is an unsecured personal loan that allows you to fund repairs, maintenance, renovation, remodelling, or any home improvement work. Since the credit is unsecured, financial institutions don’t necessitate putting down a security deposit or collateral against the approved loan amount.
Typically, you can repay your personal finance for home renovation through convenient and easy EMIs or monthly instalments. The home renovation loan tenure ranges anywhere between one year and six years. The monthly instalments depend on the interest rate, repayment period, and the principal home renovation loan amount.
Nowadays, you can quickly compute your EMI with personal loan EMI calculators available online. Consider how soon you want to repay your home renovation loan, how much instalment amount you can pay monthly, and what loan interest rate best suits your requirements. Depending on your job stability and monthly income, you can opt for an EMI plan.
What is the home renovation loan eligibility?
To avail a home renovation loan, you must fulfil some basic eligibility conditions:
- Age: An applicant must belong to the age group of 24 and 58 (when the home renovation loan completes.) Some lenders allow you to avail a loan up to 65 years.
- Work experience: If you are self-employed, a minimum of three years of work experience in your present professional domain is required. In case you are salaried, at least two years of experience is deemed necessary. Lenders usually look for employment and job stability to assess your ability to repay the loan.
- Salary: The personal loan eligibility for salaried individuals also includes a steady income. Most financial institutions require you to earn a minimum monthly income for availing a home renovation loan. Some lenders who offer easy eligibility provide personal finance for home renovation at Rs 20,000.
Other parameters considered by the lender can include your CIBIL score, employer details etc.
What are the documents required?
- Apart from fulfilling a personal loan eligibility criterion, you also need the following documents to avail a home renovation loan:
- A duly filled and signed home renovation loan application form
- For photo identity proof, a copy of your Aadhar card, voter ID, driving license, or passport will be required.
- For income proof, lenders may request a copy of the last six months’ bank statements.
- Salaried individuals must furnish salary slips from the previous three months.
- As part of address proof, applicants can provide a photocopy of their electricity bill, passport, or ration card.
- An employment certificate, a credential declaring one year of continuous employment, is also required for availing a personal loan for home renovation.
So, as you can see, availing personal finance for home improvement is not tricky at all, and with the right lender, the entire process becomes seamless.