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Buying your own house is one of the biggest milestones to achieve in your life. It gives a sense of identity and peace when you have your own home. However, the management part of it can be daunting and challenging as it requires money.
If you have a house, you may want to transform or renovate your house before a festival or special event like a wedding. The home renovation includes painting, internal or external repairs (doors, windows, ceiling, rooftop, etc), modification, and remodelling. Sometimes, you may want to add an entire floor, modify your bedroom, bathroom, or kitchen.
Whatever the home improvement needs are, you need to make an informed financial decision to pull it through without putting an extra burden on your finances. Home improvement loans are the best way to meet your financial requirements without using your savings or withdrawing investments.
Here are the reasons how home improvement loans in India can help you renovate your dream home.
Flexible repayment tenure and lower interest rates
Home improvement loans are provided to individuals who are the legal and registered owners of the house. Since the lender has assurance in terms of security, borrowers can avail of flexible repayment tenure and lower interest rates. For example, if you apply at Muthoot Fincorp, you can avail yourself of the Muthoot home loan interest rate as low as 12% and the loan repayment tenure for up to 20 years.
Generally, home loans in India have long loan tenure and lower interest rates. The loan tenure ranges from 2 to 20 years, and the best part is that most lenders offer up to 80% of the insured declared value of your property as a loan.
Easy eligibility criteria
unsecured loans, the simple eligibility criteria make a home improvement loan accessible to all. If you fulfill the underlying criteria, you can walk away with your preferred loan amount.
- You must be an Indian citizen to avail to qualify for home loans in India.
- You must be either 21 years old at the time of home improvement loan application or 65 years at the time of loan maturity.
- You must be an employee of either a public or private undertaking or must own a business.
- You must also have an active bank account.
As with documents required, you must furnish your KYC documents. In the case of a salaried person, salary slips with ITR or form 16 are required, and in the case of a self-employed person, a bank statement would suffice.
Simple application process
The application process to apply for a home improvement loan is easy and simple. You can choose to apply online or visit one of your lender’s nearby branches. To apply online, you will need to fill out an online form, submit your personal and financial documents, enter the loan amount you need, and loan tenure. Upon approval, you will get the loan amount in your bank account within 24 hours.
Tax benefits
If you are applying for a home improvement loan, you must remember that you can get tax relief. That is why more people opt for home loans in India than personal loans. Home improvement loans are tax-exempt under ITR under section 24(b). If you are eligible to get a loan, you are eligible for tax deductions for up to Rs. 30,000 per annum on the interest paid on a home improvement loan.
Absence of prepayment charges
According to the Reserve Bank of India’s guidelines, banks and non-banking financial companies cannot levy foreclosure and prepayment charges on home loans in India (including home improvement loans). However, you must ensure to take a loan on a floating rate to avail of that benefit. Insist on taking a floating rate of interest when you apply for a home improvement loan.
Adds value to your property
Most of us apply for home improvement loans to prepare for a celebration, such as marriage, parties, and festivals. However, you must also consider that it does not only add style but great value to your property. For instance, when you have enough finances to move to another house, perhaps a bigger house, you can sell your home at a premium rate.
Conclusion
A home improvement loan is the best option to renovate your house without putting any burden on your pocket. If you are planning to apply for a home loan, you can opt for Muthoot Fincorp. The Muthoot home loan interest rates are the lowest in the market and have flexible repayment tenures, allowing you to manage your finances well and have mental peace.
