Are you thinking to give your home a new touch? Architectural fashion trends keep changing with time. Every home demands restoration, painting, remodelling, etc., to keep itself updated. However, not all have the required funds to renovate their house. This is where home improvement loans can help you out.
Availing a housing loan in India provides you with sufficient funds to redecorate your house while ensuring comfortable space for you and your family. Plus, you can immediately start remodelling your home according to your taste and aesthetic preferences.
Often, people confuse home improvement loan with home loans. These are, however, quite different from each other. While home improvement loans are means for improving your already owned home, home loans are taken to buy a new house.
Are you still confused about the benefits provided by the home improvement loan? Here, we'll take you through five reasons why you should opt for this loan to make your house more attractive.
One of the major reasons for applying for home improvement loans is that it comes with a simple eligibility criterion. You can easily apply for the credit with minimal documentation.
You can apply individually or jointly to get this loan. If your house is jointly owned, all the owners have to apply for the home improvement loan. However, your family members can become joint applicants, even if they are not the property's joint owners.
Talking about the documentation, all you need are some basic documents such as ID proof, income proof, a property title deed, passport-sized photographs, etc.
You can apply for the home improvement loan online through the lender's website or by visiting your nearest branch. To apply online, you have to enter all the necessary personal, employment, and financial details. And then, you have to fill the loan amount and the term for which you wish to take the loan.
Finally, submit the required documents. Once the lender verifies your information and documents, the loan amount will be disbursed in your account within a few hours. With such a hassle-free and quick processing, you can start the renovation of your house at the earliest.
Unlike personal loans, which is unsecured, home improvement loans come at competitive interest rates. A home improvement loan is available at the same rates as a home loan. Further, it is a secured loan which means that you have to pledge your house property with the lender to avail of this loan.
Though interest rates differ from lender to lender, it usually ranges between 12%-16%. With such affordable rates, it is convenient to avail of such loans and repay them comfortably. Further, since it is a secured loan, lenders do not consider your credit score while checking your loan application. Hence, you can apply and get approved even if you have a low credit score.
Another crucial reason to opt for a home improvement loan is that it provides a tax benefit. This means these loans are tax-deductible under Section 24 of the Income Tax Act. According to this section, you are eligible for a tax deduction on the interest paid towards the loan amount.
The deduction is capped at maximum of Rs.2 Lakhs per annum for self-employed properties. However, for the tax deduction of the let-out properties, there is no such cap.
Suppose you want to enjoy the tax benefits on the purchase of furniture or electrical appliances. In that case, you must prove that you are using the loan amount towards the repair, renovation, or improvement of the house.
While availing of a housing loan in India, various NBFCs provide you with flexible repayment options. This means you can choose any number of EMIs you wish to repay according to your financial capabilities. EMIs usually range from 12 to 60 months, depending upon the amount you want to avail.
A loan calculator can help you determine the exact value of interest and monthly instalments. This will enable you to plan your repayment strategy in advance to avoid any burden in future.
We hope the above five points will help you understand the benefits of availing of a home improvement loan. So, what are you waiting for? Choose a lender, apply for a loan, and get ready to give your home a more beautiful and eye-catching look.
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