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Get a Home Improvement Loan in 4 Easy Steps!

By IIFL Home Loans | Published On Jul 12 2023 12:47 PM 1 min read 45 views 538 Likes
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Your home is where you feel a sense of belonging and create memories. It is a dwelling place you share with your loved ones.

But, with time, your abode becomes outdated and less liveable. Its structures weaken, walls leak, and interiors become dull. It does not have enough space for your growing family. So, should you buy a new house? As real estate prices are sky-high, renovating your existing home is sometimes a better and cheaper option.

Read ahead for more details on how to get a renovation home loan.

What is a Home Improvement Loan?

A home improvement loan is a personal loan that provides money for refurbishing your house. It is also called a home renovation, house repair, or home interior loan.

It covers expenses like re-flooring, tiling, kitchen remodelling, room extension, balcony design, etc. You can also use the loan amount to pay for raw materials, contractors, and interior designers.

How to Apply for a Home Renovation Loan?

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Complete the loan application from the comfort of your home

There are four simple steps to obtain a home improvement loan easily. They are:

1. Access the online loan application form

Many lending institutions allow you to apply for a home improvement loan online. You can find the form link on their websites' home pages and product pages.

For example, you can find the 'Apply Loan Online' tab on the top right corner of IIFL Home Loan's website pages. You can also access the form by clicking the 'Apply Now' link from their home improvement loan page.

2. Fill out the form

Enter basic details like name, mobile number, permanent account number (PAN), and city to proceed.

3. Click the 'Submit' button

Check the details you entered in the previous step. Then hit the 'Submit' button.

4. Wait for a call from the representative

Once you submit the form, a representative from the lending institution will contact you via phone, short message service(SMS), Whatsapp, social media, or e-mail. You also authorize the institution to obtain your credit score from Credit Information Bureau India Limited (CIBIL).

What Documents Should You Submit with the Loan Application Form?

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Document checklist for home improvement loan.

You must furnish the following documents for house repair loans:

  • Identity and address proof

    • Aadhar card

    • PAN

    • Valid passport

    • Voter card

    • Other documents, as specified by National Housing Bank.

  • Income proof

    • Pay slips.

    • Bank statements

    • Latest tax returns and Form 16

  • Property details

    • Copy of property ownership documents and plans approved by local authorities

    • Construction estimates

  • Other documents

    • Passport-size photos

    • Past 6 months' bank repayment statements for running loans

    • Appointment letter/Employment contract

    • A cheque for loan processing fees

How Does a Home Improvement Loan Benefit You?

The application process for home improvement loans is hassle-free. You get funds swiftly without lengthy paperwork. Under section 24(B) of the Income Tax Act, 1961, you can save taxes up to ₹30,000 on the house repair loan interest payments.

Check out IIFL Home Loans' home improvement loans now! We offer loans of up to ₹50 lakhs for a tenure of up to 25 years. We also approve your loans within 30 minutes at affordable home renovation loan interest rates.

FAQs

1. What are the eligibility conditions for an interior home loan?

You can apply for a home improvement loan if:

  • You are a resident Indian, non-resident Indian (NRI), or a person of Indian origin (PIO)

  • You are between the ages of 18 to 75 years.

  • You are salaried/self-employed.

  • You own and self-occupy the house you are refurbishing.

2. Who can be your co-applicant for a home improvement loan?

Any close family member between 18 to 75 years old can be your co-applicant. Women get better home renovation loan interest rates. Thus, if you make your wife/mother a joint applicant, you will get a bigger loan at an attractive rate.

3. Can you buy furniture using a home improvement loan?

You can buy immovable furniture and fixtures with home improvement loans. These loans cannot be used for buying/repairing movable items.

4. How to get money for home renovation?

A home improvement loan is the best way to fund house renovations. It protects your savings and increases your bank balance through tax benefits. You also get money quickly with less paperwork and an easy loan application process.

5. Can you calculate your loan instalments beforehand?

Many lenders have readymade EMI calculators on their websites. Enter your loan amount, tenure, and interest rate. The calculator will show your monthly instalment amount instantly.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.