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Home Renovation Loan: Banks and NBFC companies also give loans to people for home renovation. This type of loan is specifically designed to cover home owners for making improvements to their home. If you want to design your old house in a new way or want to renovate it, then you can take this type of loan. This type of loan is given to reduce the cost of the house.
This loan is quite popular, offered mostly by banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs). Home loans can be used to pay for a variety of home improvements. For example, if you want to remodel a kitchen or bathroom, add a new room or additional room, or improve plumbing, electric, and home energy.
How much loan amount will be available
If you are taking a loan for home renovation, then you can take a personal loan up to Rs 5 lakh, while a home renovation loan can be taken up to Rs 25 lakh. However, it depends on the lender that how much loan he will give. Along with this, the loan amount is also given on the basis of the property and other documents of the customer.
How much 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 as 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
You must be a citizen of India. Also, there should be regular sources of income. Your age should be 21 years and credit score should also be good. You may also need to provide proof of income and employment, good credit score and stable finance history.
what documents are needed
Documents required for home renovation in India include proof of identity, address, income and employment. You will also need to provide proof of ownership of the property and collateral, estimated repair cost.
tax exemption
If you take this loan, then the borrower can claim interest of up to Rs 30,000 annually under tax deduction under section 24 (b). This deduction can be made on interest payment up to Rs 2 lakh on own house.
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