What is a Home Improvement Loan?
For an Indian, a home is an aspiration and
a comfortable den to reside in and be comfortable. It is possibly the best
investment and we usually prefer sticking to our own home and not changing it
very often. However, a home needs a lot of repairing and renovation did when it
is an old property. The need for renovation is more when there is a festive
season in India. A lot of Indian families try out every possible way to
renovate and decorate your home in a wonderful way. It is a huge ticket expense
that needs to be supported by a home renovation loan. You need a huge amount of
money to get the renovation done. You can take a home
renovation loan against your property. It is a secured and flexible
loan that can be used for the renovation of your old home into a new one. If
you are seeking out a low rate of interest and a fast home loan, you will have to meet the eligibility criteria.
What
is a home renovation loan?
A home renovation loan is a type of secured
loan, where the security is your home and you get funds to meet the expenses of
renovating your home. It comes in a one-time disbursement and you can use the
fund for anything related to renovation. You can expand, construct, remodel or
go for any sort of painting, fitting and modular facilities. A home renovation
loan comes with a rate of interest and other charges.
Eligibility
criteria for a home renovation loan
Income stability: Home renovation loan
approval will seek the right income stability. The source of income should be
stable for both salaried and self-employed individuals. Self-employed
individuals should be stable in terms of cash flow, statement, balance account,
and revenue. For the salaried employees, the full-time permanent position and
employer will play an important role.
Security of property: A home renovation
loan is usually given to those with a secured property. The home renovation is
done on the very same home property
and that is why it is a secured home. So, borrowers that need a home renovation
loan needs to have their own home. You cannot borrow a home renovation loan to
make renovation or remodeling on your rented apartment. The home should be
yours, and that makes it eligible for a home renovation loan.
Good credit score: A credit score is an
inevitable thing in the credit eligibility of a home renovation loan. The
borrower must have a good credit score that is above 750 to make sure he is
worth borrowing a loan. This will help you convince your loan provider and that
gets you easy approval as well as a low rate of interest. It will be useful for
you to manage your loan affordably. A good score represents timely payments,
good long credit age, and no outstanding or overdue credit card bills.
Documents
for a home renovation loan
●
Income Tax Returns (ITR) of
last 3 years
●
Passport
●
Voter ID
●
NOC form
●
Property papers
●
Balance Sheet and Profit &
Loss Account Statement of the Company
●
PAN Card
●
Aadhar Card
●
Application form
●
Passport size photograph
●
Form 16 for 2 years
●
Salary slips of 3 months
●
Business proof
Finishing
up
If you need to go for a home loan or home improvement loan, make sure you consider the right total cost
of the loan. If you need a fast home
loan for instant buy, you can visit Clix Capital to get a smooth borrowing
experience.
Must Read : Know
the Eligibility & Benefits of Home Improvement Loan
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