Loan for Home renovation: Comprehensive Guide for Home owners

From longer durations to tax advantages Here are a few of the benefits and cons of home improvement loans.

On May 24, 2022, the Reserve Bank of India (RBI) raised the ceiling on loans to individuals for carrying out repairs/additions/alterations to their dwelling units. As per the new guidelines that a person living with a metropolitan area (population over 10 lakh or over) is eligible for the home improvement loan up to 10 lakhs. In other locations, the limit is Rs 6 lakh.

How do I get a loan for home improvements?

• The home improvement loan sometimes referred to a home renovation loan keeping true to its name it is available to those looking for credit to improve the condition, repair, or renovate their homes.
• The loan can be used to finance your home’s exterior and internal repair and renovation. It can be used to fund upgrades like flooring, plumbing and the waterproofing of sanitary and sanitary work and repairs to structural issues as well as purchasing furniture and fixtures to mention a few.

Eligibility and documentation required

• Every salaried or self-employed person can take advantage of this loan. “Most lenders will approve the loan for home improvements when your earnings and credit score meet their criteria. The lender could require proof of income like income slips, IT return or bank accounts. When you’ve already got an account at the bank and you have good financial records it is unlikely that the bank will need to request a number of documents.
• The applicants may also be required to submit documents related to their property and estimates of the estimated cost of repairs or renovations at the request of the lending institution.
• But, keep in mind that “Anyone who is over 21 can apply to take out an improvement loan for their home. However, the maximum age limit typically is set at the age of retirement for the borrower, or at 65 in the case of self-employed applicants.