Paisa Express, with its strong and experienced team of consumer finance experts is here to help and assist you make personal finance decisions easy, transparent and convenient. We intend to simplify your decisions through technology and data innovations and information at your fingertips.
We at Paisa Express believe in an open and friendly environment and encourage free-flowing ideas, teamwork, and assistance at all steps. If you are looking for a Home improvement/Renovation loan, we will help you choose the best lender.
Home Improvement Loan, Personal Loan for Home Renovation:
Are you looking to renovate your house? Let’s discuss the concept of home improvement loans in India and how it helps home buyers to spruce up their property
Apart from lending money for property purchases, a majority of banks in India also offer loans for making improvements to your property. These could be in the form of renovation, expansion, etc. Such products are known by different names – home improvement loan, home renovation loan, home expansion loan, etc.
Let us discuss the details of home renovation loans and who could apply for them.
This product is unique, because property owners can avail of home improvement loans for various purposes such as making renovation to the house, buying household furniture, fixtures and appliances, specific guidelines are issued, with respect to the usage of the fund. However, you could get home improvement loans for a variety of expenses, right from renovation to the purchase of furniture of your new home. Most banks offer70%-90% of the estimates as a renovation loan
Home improvement/Renovation/Expansion loans are offered for the purpose of:
- Complete renovation of property.
- Upgrade.
- Repair of your house/flat.
- External and internal repairs/paint.
- Waterproofing and roofing.
- Tiling and flooring.
- Plumbing and electrical work.
- False ceiling and woodwork (fixed to the building).
Similarly, home improvement loans, can be used for the purchase of household furniture, fans and air-conditioners, refrigerators and wardrobes.
By and large, most banks offer home improvement loans for the above mentioned purposes.
Loan Eligibility Check
Before a person applies for a loan it is always good to do an eligibility check which is available at Paisaexpress.com This way your credit score will not be affected as we will only soft pull your credit score and check with other internal criteria to make sure you are eligible.
Eligibility Criteria The following are the eligibility criteria for Home Improvement/Renovation/Expansion Loans
- Age: The minimum age requirement is 18 years while the maximum age at the time of loan completion is 70 years
- Loan Tenure: Most banks provide maximum tenures of 20 years but there are some banks that provide loan tenure of 30 years
- Loan Amount: You can get loans as per your income eligibility or max up to 85% of the property value.
- Interest Rate: The loan starts at 6.50%
- Processing Fees: It varies from bank to bank. In general, the processing fee will be 0.5% to 1%.
- Pre-Payment Charges: Nil
Documents required for Home Improvement - Renovation Loan
ID & Address Proof (Any One Required)
- Aadhaar card
- PAN card (Mandatory, if income is considered for loan eligibility calculation)
- Valid Passport
- Voter ID card
- Driving license
- Utility Bill: Electricity, Telephone, Post-paid mobile, water bill, etc.
- Ration card
Property Documents Required:
- Copy of Sale Deed
- Last 15 years link documents
- Last 15 years Encumbrance Certificate
- Copy of Approved Municipal Sanction Plan
- Land Regularization Certificate
- Latest Property Tax Receipt
- Copy of Estimates from a certified engineer
Additional Documents required for Salaried Individuals
· Salary slips for the latest 6 months
· Cash Salary – Income details on Company Letterhead (Salary up to Rs.30, 000 p.m.)
· Copy of all bank statements for the latest 6 months. Salary credit bank statement is mandatory.
· Copy of Form-16 for latest 2 yrs.
Additional Documents required for Self-Employed Professional
· Certificate of qualification for professionals: CA, Doctors or Architects
· Copy of latest three years’ income tax returns, along with computation of income
· Copy of latest three years’ P/L account with all schedules and audited balance sheet, wherever applicable.
· GSTR returns or TDS Certificate
· Bank statement for the latest 1year (Savings account, current account, and O/D account)
Additional Documents required for Self-Employed Non-Professional
· Copy of latest three years’ income tax returns, along with computation of income
· Copy of latest three years’ P/L account with all schedules and audited balance sheet, wherever applicable
· GST returns or TDS Certificate
· Bank statement for the latest 1year (Savings account, current account or an O/D account)