A home requires renovation from time to time to meet evolving needs. Renovating or refurbishing your home is a costly affair today due to rising costs of labor and materials. A personal loan for home renovation is one of the ideal options to pay for your home renovation, repairs, and improvement. Are you thinking of renovating your home with a home renovation loan?
Then, you should have a clear understanding of the home-renovation loan eligibility criteria and home renovation loan interest rates. Also, being aware of the benefits of a home renovation loan and ways to apply for them is vital.
Different aspects of a personal loan for home renovation
Home renovation loan eligibility criteria
The amount of loan approved depends on various factors like your credit score, income, financial obligations, and many more. Following are the basic eligibility criteria that you must fulfill to avail any home renovation loan:
- You must be an individual aged between 23 and 58 years of age.
- You must be a salaried individual working for an MNC, public, or private limited company.
- You need to be a residing citizen of India.
The loan eligibility criteria may differ from lender to lender.
Benefits and features of a home renovation loan
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Instant approval
Instant approval is one of the major benefits of a personal loan. If you meet the basic eligibility criteria and share the required details, your home renovation loan application gets approved instantly.
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Collateral-free loan
A personal loan for home renovation is a collateral-free loan. You do not need to worry about pledging any collateral security to avail of this loan.
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Easy processing and minimum documentation
Easy documentation and speedy approvals lead to the easy processing of this loan. Thus, you can start your renovation work without waiting a long time for the approval of your loan application.
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The flexibility of usage
You can use your home renovation loan fund for all renovation activities of your house. You can withdraw and repay funds from your total loan amount as and when needed. Interest is payable not on the entire sanctioned loan amount but only on the amount used. This way, you only need to pay the interest on the utilized amount as the EMI and nothing else. The rest of the amount is adjusted after the end of the loan tenor.
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Flexible loan tenor and repayment
A flexible loan tenor is also one of the advantages of this loan. The tenor of a home renovation loan ranges from 12-60 months. If you are comfortable paying a low monthly installment, you can choose a long tenor and vice-versa.
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Lower interest rate
A personal loan for home renovation is available at a lower interest rate as compared to other loans. A lower interest rate reduces the cost of your loan, which in turn reduces the total cost of renovating your home.
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Tax benefits
The interest that you pay on your home renovation loan is eligible for tax deductions. Under Section 24, you can avail of tax benefits on the interest paid on the loan.
Steps for applying for a personal loan for home renovation
You can apply online, and only need to follow some simple steps:
- Fill in your personal, financial, and employment details in the online application form.
- Select the loan amount and loan tenor.
- Submit the required documents online.
- The representative of the lending institution gets in touch with you.
- You receive the amount in your bank account on approval of your loan application.
Now that you know all about a personal loan for home renovation, you can go ahead and avail the benefits of this loan for renovating your house.
Bajaj Finserv brings to you pre-approved offers on its various financial products like personal loans, home loans, business loans, and many more. It is to simplify the loan procedures and to make it less time-consuming.
You can check your pre-approved loan offer by sharing some basic details like your name and mobile number.
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