Home Renovation Loan: Banks and NBFC companies also provide loans to people for home renovation. This type of loan is specially designed to cover home owners to make improvements in their home. If you want to redesign or renovate your old house, you can take this type of loan. This type of loan is given to reduce the cost of the house.
These loans are very popular, mostly offered by banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs). Home loans can be used to pay for various home improvements. For example, you can take out this loan if you want to remodel a kitchen or bathroom, add a new room or an extra room, or improve plumbing, electric, and home energy.
How much loan amount will be available
If you are taking a loan for home renovation, you can take a personal loan of up to Rs 5 lakh, while for home renovation you can take a loan of up to Rs 25 lakh. However, it depends on the lender as to how much loan he will give. Along with this, the loan amount is also given based on the customer’s property and other documents.
What will be the interest rate?
If you take a loan for home renovation, banks will charge more interest than a home loan, as such loans are risky. Home loans are offered at floating interest rates. The home loan interest rate is given keeping in mind the credit score, loan amount, employer’s profile and business etc. Its interest rates are lower compared to personal loans, which can range from 8% to 12%. The loan repayment period can be up to 20 years.
Who will get this loan?
The borrower must be a citizen of India. Also, there should be a regular source of income. Must be at least 21 years of age and have a good credit score. You may also need to provide proof of income and employment, a good credit score, and a stable financial history.
What documents will be required
Documents required for home renovation in India include proof of identity, address, income and employment. Also proof of ownership of the property and collateral, estimated repair cost also have to be shown.
Tax Exemption
If you take this loan, the borrower will get tax deduction under section 24 (b) of Rs. 30,000 can claim interest. This deduction can be made on interest payments up to Rs 2 lakh on own house.
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