Home improvement loan is a great way to satiate the craving to renovate your home or property right when you want it rather than waiting for the savings to add up to your budget. This scheme allows you to borrow up to 90% of the cost of the property with an interest rate varying from 9% to 12.99%.
To be able to apply for a home renovation loan the following criteria needs to be met
- Minimum age required to apply for the loan is 24 years.
- Repayment of the loan before the individual turns 60 years.
- In case the home or property is owned by multiple people, all the owners need to be co-applicants.
- The applicant must have a job with a regular income or must be self-employed.
The applicant needs to possess the following documents to apply for a home improvement loan
- Proof of identity which could be the applicant’s Aadhar card, passport, voter ID, PAN card or driving license.
- Proof of address like a property tax receipt, electricity bill, water bill or any other utility bill.
- Proof of age which could be the applicant’s matriculation certificate, Aadhar card, birth certificate, passport, driving license etc.
- Recent passport size photographs along with the proof of investment.
- If the individual is a salaried employee then he or she needs to submit Form 16, certified letter from employer and Income Tax returns of the last 2 years of service.
- In case the individual is self-employed, he or she needs to submit Income Tax Returns of the last 2 years and Income in the last 2 years attested by a Chartered Accountant along with the sales receipt.
- Original title deeds of the property or home have to be submitted.
- Proof of no hindrance on the property has to be submitted.
- The proposed budget for the renovation work that has been planned to be done by the architect or civil engineer needs to be submitted to the bank at the time of verification.
Procedure to apply
Mentioned below is the procedure for applying for home improvement loans, broken down into a few simple steps for the readers’ convenience.
Confirm the eligibility
The first step before applying is to verify if you are eligible to get a home renovation loan in the first place. So make sure your application meets all the eligibility criteria as mentioned above.
Next step is to make sure that the home renovation loan scheme that you are opting for is best suited to your needs and also your capability to repay. Calculate the EMI properly to ascertain that the repayment of the loan could be done in time without any burden.
Submission of documents and application
Fill the application form properly and submit it along with the required documents as mentioned above so that no issue arises at the time of verification. Also, make sure to go through all the terms and conditions before applying.
Wait for the judgement
Once done with all the formalities, all you need to do is to wait for the verification of your application and documents by the professionals before the approval. Once the loan is approved the loan amount will be wired to your account. Time taken in this whole procedure may vary from lender to lender.