Published On: Wed, Aug 23rd, 2017

All About Taking A Home Improvement Loan: What You Should Know

Renovating a house takes a lot of thinking. You got to check in every aspect before you jump in for accomplishing the task. Read about Home Improvement Loan and how can it help you and your dream house get a new look and feel.

If you think that just by investing in a house you can elevate its return, you are totally wrong. To get higher returns in future, you need to maintain the house in such a way that the resale value increases. For that, renovating it from time-to-time is one way.

But, considering the amount of money required to get a home refurbished, you might not take this decision anytime sooner. Don’t worry. You can use Home Improvement Loan from a lending institute. Don’t know about it? Have a read

Who Can Apply for This Loan?

If you own a property, you wouldn’t have to face any hindrances while applying for this loan. If the property is in the name of more than one person, then all the owners would have to apply for this application. So, all the co-applicants should be the co-owners of the house. In case you already have a home loan, it would be made sure that the total amount of the loan, including the loan for home improvement is not more than 85-90{6db5e000f09c1f5550c90f5b05c73e0fed985a870a9567f660d0a50967ef89bc} of the total value of the house.

Documents Required:

While applying for the loan, you would be asked to show various documents. Make sure you go through the list of these documents before submitting to avoid inaccuracies. The list of relevant documents includes:

  • Identity proof
  • Address proof
  • Income proof
  • Co-applicant or guarantor

Eligibility:

To avail a Home Improvement Loan, here is the eligibility criteria:

  • Self-Employed:

People who are self-employed can get this loan. The occupation should be, own business, doctor, architecture, CA, having partnership firm, private limited company, an unlisted company, or closely held company.

  • Salaried:

Those who are an employee of any multinational company, listed public Ltd company, government sector, organisation private limited company, closely held or unlisted company.

How to get the loan?

When it comes to how to avail the loan, there are some of the steps that you can follow:

  • Cost Estimation:

First and foremost, you must estimate the cost required to get the home renovated. It will help you in getting the exact amount of loan.

  • Find the right loan:

To get a proper and adequate loan, start searching for the options. Check out the requirements of different financial institutes. Find out how much interest rate they are offering. After evaluating every single factor, select one financial institute from the list.

  • Apply:

Since you have already collected all of the necessary documents, you wouldn’t face any hurdles while applying for the loan. Submit the proper documents along with the loan application.

  • Review:

Once your loan is approved, make sure that you review all the terms and conditions offered by the lending institute. Read the documents carefully and then sign.

Inclusions & Exclusions:

  • Inclusions include: Exterior renovation work, painting, flooring, balcony creations, plumbing, extensions, etc.
  • Exclusions include: Purchasing new furniture, cabinets, wardrobes, consumer durable goods, etc.

So, it was all about the procedure of Home Improvement Loan. To increase the value of your house, get in touch with an authentic and reliable lending institute today.

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