Have you been wondering about giving your old home a new touch? Architectural fashion and trends keep changing with time. Hence, it is plausible to think that your home has gone out of style. Moreover, like any other thing you own, your home also needs timely maintenance. Your home needs repairing and refurbishing to maintain its elegance and strength. Let us look at how home improvement loans or getting a home loan top-up on your existing home construction loan can help you meet the expenses effortlessly
What are home improvement loans?
A home improvement loan falls under a special category of home loans. It is a secured loan in which the borrower has to pledge the property on which he or she would be spending the sanctioned capital on, as collateral against the home improvement loan amount. The pledged property will act as a security for the lender against the disbursed home improvement loan amount. The sanctioned money can be used for remodelling, repairing, painting, architectural updates etc. as per the wish of the borrower.
Why go for a home improvement loan?
As easy as it sounds, renovation works can take up a lot of your finances. It may not be feasible for everyone to deal with the expenses right away with their monthly budgets and savings alone. This is where a home improvement loan sweeps in as a decking solution to the conundrum. You can also opt for a home loan top-up on your existing home construction loan to meet the expenses of refurbishing your new home. There are a lot many spellbinding features that a home improvement loan has to offer. Let us take a glance at some of the highlighting features.
-> Instant funding
There is no need to save money for years to work on home renovation. Apply for a home improvement loan and get the loan amount disbursed in no time. This amazing feature lets you start with your home renovation project right away.
-> Flexible repayment options
Home improvement loans come with flexible repayment options, which the applicant can select according to their financial capability. You can calculate the exact value of interest and monthly instalments using a home loan interest calculator. This will help you estimate your finances in advance to make sure that the repayment of the loan does not overburden you.
-> Affordable interest rates
Home improvement loans are offered by various lenders at affordable interest rates, starting from around 9 per cent. These vary from lender to lender.
-> Easy documentation
The documentation process for home improvement loans is kept quite simple and secure for borrowers’ convenience. Once you are done examining your home loan eligibility using a home loan eligibility calculator, you can proceed with your application and submit the required documents for the verification process.
-> No biasing based on CIBIL score
Since home improvement loans are secured loans, there is no biasing done based on the credit score of the applicant. In other words, an applicant can apply and get their home improvement loan approved even if they have a low CIBIL score.
-> Tax Benefit
You can avail a deduction of up to Rs. 30,000 for the interest to be paid on loan. This eventually leads to tax savings of up to Rs. 10,300, which result in the fall of your overall borrowing cost.