Home loans have
proven themselves as an outstanding way of accomplishing customers' dream home
projects. The wide array of categorization of home loans, home improvement
loans, home construction loans, home extension loans, etc. enables taking care
of every individual need of different borrowers concerning their dream home.
India's home loan market touched a whopping Rs 19.3 lakh crore in FY 2019. This obviously meant
that there is also a huge potential for home improvement loans.
About home
improvement loan
As the name
suggests, home improvement loans are a special category of home loans which can
assist in meeting the expenses of home renovation projects. Home improvement
loans are secured loans and hence require pledging of collateral. In other
words, to get a home improvement loan, the borrower needs to first pledge his
property as collateral to the lender against the loan amount as security. The
disbursed loan amount can be used to make the modifications in the house as the
borrower desires.
Eligibility
criteria for home improvement loan
An individual
needs to meet certain criteria to be eligible to apply for a home improvement
loan. Not meeting any of the following criteria might lead to rejection of
application at a later stage of the verification procedure.
-> Age of the
applicant should be 18 years or above and below 70 to be eligible to apply for
a home improvement loan.
-> The tenure
for the home loan repayment can not be more than 35 years. The maximum allowed
home loan tenure is subject to change depending on the financial institution.
-> The monthly
wage or salary of the individual should be Rs.25,000 or above to apply for a
home improvement loan.
-> Salaried
individuals should have at least 3 years of work experience.
->
Self-employed individuals should have a minimum of 5 years of business
firmness.
-> A home loan
value of up to 90 per cent of the total value of property pledged as collateral
can be sanctioned and is subject to change depending on the financial
institution and financial firmness of the borrower.
-> To increase home loan eligibility, a maximum
of 3 family members can be added as co-applicants in the home loan application.
You can make use
of a home loan eligibility calculator and fill in the right details to know your
eligibility for applying for a home loan.
Benefits offered
by home improvement loans
There are
multiple benefits offered by home improvement loans which can be easily exploited
by borrowers to meet the costs of home modification or home renovation
projects.
-> Convenient and flexible repayment
alternatives
Home improvement
loans come with flexible repayment options keeping in mind the diverse
financial background of borrowers. Borrowers have the liberty to go for the
repayment scheme that best suits their financial capability. You can find out
the precise value of interest and equate monthly instalments using a home loan
interest calculator. This can assist you in estimating your finances in advance
to avoid any kind of unforeseen financial plight.
-> Budget-friendly interest rates
Home improvement
loans are offered by multiple lenders at affordable interest rates. The
interest rates begin from 7.9 per cent and can change depending on the will of
the financial institution.
-> Immediate financing
This outstanding
feature lets the borrower proceed with his project without having to wait years
for his or her savings to add up. The minimal requirement of documentation
optimizes the verification process, making the overall procedure a lot faster.
All these
astounding features together can make your home renovation projects go smoothly
and effortlessly without having you to worry about the financial constraint.
