Home Renovation Loan – Everyone wants to build a beautiful dream house like Antilia. But, due to a lack of money, it is difficult to build a dream home and renovate it. Renovating home and making it beautiful and comfortable is becoming a necessity today. When you are renovating a home funding is a key thing. A home improvement loan is one of the best ways to get finance for renovation.
A home renovation loan can be taken to renovate, modify, repair, or revamp your home. You can fulfill your dream and live a comfortable life in your home by renovating and making it more beautiful using a home improvement loan. These loans are similar to the home loan. A home loan allows you to purchase a new house. However, in a home improvement loan, you can improve your already owned house.
Home Renovation Loan – Features
Home Improvement Interest Rate
Home Improvement Interest rate is the same as that of the home loan interest rate. The home improvement interest rate would be adjustable (floating) over the tenure of the loan or fixed. The interest rate option can be selected by the customer at the time of adopting a loan.
Amount
You can get a loan up to 100% of the improvement subject to the market price of the property. Few banks keep a maximum cap up to 90% of the property value. The estimate of improvement would be verified by the technical officer. The amount would further depend upon your income and capacity to repay the loan.
Eligibility
Home improvement loan eligibility depends upon your income. You can apply for this loan individually or jointly. Salaried, as well as self-employed individuals, can also apply for the home improvement loan. The minimum age limit to apply for this loan is 21 years.
Usage
A home improvement loan can be used for the renovation of your house. The renovation work would involve all types of activity related to the improvement of your home. Few examples are repairs of the house, flooring work, celling work, electrical and plumber work, painting work, home extension work etc. In short, you will get complete flexibility for the usage of home renovation loans.
Also Read – 10 Best Bank for Home Loan in India 2020-21
Documents Required
Following documents would be required in order to apply for home renovation loan.
- Application Form
- Identity document – Aadhaar Card, PAN card
- Income Proof – Bank statement of 6 months or Income tax return
- Residence proof
- Original Title Deed of your home
- Photographs of applicant
- Cheque for Processing fee
- Estimate for the renovation work
Best Home Renovation Loan in India
#1 HDFC Home Renovation Loan
HDFC offers home renovation loans to salaried as well as self-employed people. The loan is offered to new as well as old HDFC home loan customers. Home improvement loan can be applied individually or jointly. All property owner have be co-applicant for the home improvement loan.
Loan Amount
| Loan Amount | Maximum Amount |
| Up to 30 Lakhs | 100% of improvement estimate up to 90% of market value of property |
| 30 Lakhs to 75 Lakhs | 100% of improvement estimate up to 80% of market value of property |
| Above 75 Lakh | 100% of improvement estimate up to 75% of market value of property |
Interest Rate – Salaried
| For Women (up to 30 Lakhs) | 6.95% to 7.45% |
| For Others (up to 30 Lakhs) | 7% to 7.50% |
| For Women (30 Lakhs to 75 Lakhs) | 7.2% to 7.70% |
| For Others (30 Lakhs to 75 Lakhs) | 7.25% to 7.75% |
| For Women (75 Lakhs and above) | 7.30% to 7.80% |
| For Others (75 Lakhs and above) | 7.30% to 7.85% |
Pros
- Interest rate option for adjustable and fixed both
- Low interest rate for the home renovation loan
- Available for new as well as old customers
- Easy Documentation
Cons
- Property Insurance is required
- Processing fee is 0.5% of home loan amount or Rs.3000 whichever is higher
#2 Bajaj Finserv Home Renovation Loan
Bajaj Finserv offers home renovation loan via personal loan route. You can get approval for home improvement loan quickly and easily. The approval time for Bajaj Finserve Home renovation loan is very less. The loan disbursement take place very quickly.
Loan Amount
Bajaj Finserv offers home improvement loan up to 25 Lakh. You can renovate or redecorate your home with a personal loan of Rs.25 Lakh.
Interest rate
The interest rate starts from 12.99% onwards. The tenure would be from 2 years to 5 years.
Pros
- Online facility to apply for loan
- Flexible Loan tenure
Cons
- Higher rate of interest
#3 ICICI Home Renovation Loan
ICICI Bank offers personal loan for the home renovation purpose. The maximum amount of loan offered by ICICI for this purpose is 20 Lakh. It is loan without any collateral and it can be processed quickly. Applicable interest rate and other details are given below.
Loan Amount
The maximum loan permissible by ICICI under this option is 20 Lakh.
Interest rate
The interest rate starts from 11.25%.
Pros
- Quick processing and disbursal
- Less documentation
- Facility to apply loan online
Cons
- Higher rate of interest
#4 Bank of Baroda Home Improvement Loan
You can renovate your home and make it very good living space by Bank of Baroda Home Improvement Loan. The home improvement loan from Bank of Baroda comes with competitive interest rate and zero pre-closure charges. You will also get group credit life insurance cover along with this loan. Key features detail of this loan is given below.
Loan Amount
Home improvement loan amount offered by this bank is very high. You can get loan amount up to 10 Cr. The amount depends upon your income and valuation of the property.
Interest rate
The rate of interest applicable on the loan is variable and in the range of 6.85% to 7.85%.
Pros
- Higher loan amount is offered
- Repayment period is up to 30 years
- No prepayment charges
- Attractive rate of interest
Cons
- Lot of documentation work required
#5 Tata Capital Home Renovation Loan
Tata Capital also offers loan for the home renovation. You can borrow up to 25 Lakh from Tata Capital for the renovation of your house. You can use Tata Capital Home Renovation loan for all types of renovation including repair and structure modification. No security collateral required for this loan.
Loan Amount
The loan amount varies from Rs.75000 to 25 Lakh
Interest rate
The interest rate starts from 10.99% and loan tenure is from 1 year to 6 years
Pros
- Loan is available for the lower amount starting from Rs.75000
- Flexi EMI option is offered
- Loan can be used for the modification renovation of outdoor space
Cons
- The rate of interest is slightly higher
Advantages of opting Home Improvement Loan
Lower Interest Rate
The rate of interest for home improvement loans is lower compared to other loans such as a personal loan. Most of the time home loan interest rates would be equal to the home loan. The lower interest rate would be beneficial as you would be able to save money.
Flexibility in Usage
One of the key benefits of home improvement loan flexibility of usage. You can use this loan for civil, carpentry, painting work, etc.
Less Paper Work
The paperwork required for a home improvement loan would be very less if you opt for a home improvement loan from the same bank. Bank will do physical verification of the document and ask for minimum documents for clearance of the loan.
Multiple Options of Lender
There are multiple options for getting a home improvement loan. Most of the home loan lenders would offer home improvement loans. You can get more options so that you can select an appropriate lender before opting for a loan.
Conclusion
A home renovation loan is one of the best and most appropriate options if you are planning to renovate your home. Make sure to compare all available loan options before selecting a home renovation loan.
Leave a Reply