A house is not a home until it depicts your true lifestyle. A ‘Midas touch’ can transform it in a beautiful manner. Whether it is a complete renovation or just a few bunches of comfortable extensions, a well-planned home renovation or improvement plan may bring you the desired joy. Considering that home renovation is an expensive affair, a home improvement plan going on hold due to a paucity of funds may not be surprising. If this is the case, a home improvement loan may be of great help. It is one of the most effective ways to secure funds for home renovations.
What is a home improvement loan?
A home improvement loan is a monetary assistance offered by us, at Indiabulls, to an individual for the renovation of a house. While a home loan helps in owning a house, a home improvement loan or a home renovation loan helps in improving an already-owned house. Also referred to as a home renovation loan, these loans are affordable, flexible, and the most preferred financial way to remodel an existing house. The following are the two types of home improvement loans available:
- Secured home improvement loan Such loans are approved based on a collateral or a repayment guarantee, where the home is used as the security.
- Unsecured home improvement loan It is similar to an unsecured personal loan, which is offered based on the credit profile of the borrower.
Documents required for a home improvement loan
Listed below are the documents required to avail of a home improvement loan:
- A valid photo identity proof
- A valid income proof such as salary slips, bank statements, Form 16 or 16A based on the profile of the applicant, and an ITR receipt
- Documents of the property for which the renovation is planned such as the original title deed, a home renovation estimate, and an encumbrance certificate
Tips to keep in mind before taking a home improvement loan
If you have decided to opt for a home improvement loan, it is important to take into consideration the below-mentioned factors:
- Estimate the cost of your home renovation project As an initial first step, you should evaluate and determine the estimated fund required to complete the renovation work with the help of a professional contractor. This will provide you with a fair idea on the amount of loan required and the cost of the loan. Try to work with two to three contractors to get the best offer. It is wise to work on an allowance of 10% to 20% at the time of finalization of the loan amount to handle any unforeseen costs.
- Keep a check on your credit score and history Lenders always review and rely on the credit history of an individual, available at CIBIL, while making a loan decision. A higher credit score helps in availing of better terms on a house renovation loan. Regular checks on the credit score will certainly assist in avoiding any discrepancies.
- Evaluate your equity Home improvement loans are largely offered based on the equity of the homeowner. Lenders need to be convinced about your repayment capability during any unforeseen circumstances. In a home improvement loan approval process, it is the equity of the applicant, which influences the final loan agreement paper.
If you are planning to spruce up your house with a bigger kitchen, with modern facilities, or a classy-looking living room, you may rely on the home improvement loans provided by us, at Indiabulls Housing Finance. They are affordable with low-interest rates, have an easy and hassle-free documentation procedure, follow a quick approval process, and offer tailored repayment facilities. You may apply for an Indiabulls home improvement or home renovation loan jointly or individually and the loan term may spread up to 15 years, based on factors like the profile of the applicant, age of the applicant, and the property. Apply now to get a personalized home improvement loan offer from Indiabulls Home Loans and renovate your house per your tastes.