There needs to be no reason to beautify or repair your home. Home repairs can be extensive, like plumbing, electrical systems, external or internal paint and wash, and so on. On the other hand, they could also be subtle, like changes in furnishings, décor, or aesthetics. Whatever the reason, home repairs or renovation require a lot of funds. Generally, it can be hard to spend this huge amount from your existing income, but one of the best ways that can help you during this situation is applying for Home Renovation or Home Repair Loans

Several financial institutions offer Home Renovation Loans at competitive interest rates, provided you meet certain conditions.

Here we will discuss what these conditions are and how you can easily get a Home Renovation Loan.

Why Should You Apply for a Home Repair Loan?

You can apply for a Home Renovation Loan to manage the renovation of your house. In comparison to Personal Loans, these loans are a much better and more affordable option. Let’s explore why!

Lower Rate of Interest

Generally, Home Renovation Loans are available at affordable interest rates, which can get as low as the ones you get for Home Loans. You can use a Home Loan interest calculator to compare loan offers from different financial institutions and take the right decision.

Quick Approval and Disbursal

Another feature of these loans is that they get quickly approved, verified, and processed, especially when applied online. The loan amount will be disbursed into your bank account quickly.

Long Tenure

The repayment period for Home Renovation Loans varies between 15-20 years. However, depending on the Equated Monthly Instalment (EMI) affordability and interest-saving intent, you can settle for a loan tenure that is beneficial for you.

Who Can Get a Home Repair Loan?

When borrowers apply for Home Renovation Loan, the lending financial institution checks various factors to analyse their repayment capacity. 

Although it differs from one lender to the other, some common eligibility criteria are taken into consideration by every lender. They are as follows:

  1. Your age should be at least 21 years or more, and you should be an Indian resident.
  2. Salaried or self-employed people can apply for a Home Renovation Loan, provided they meet the monthly/annual income criteria.
  3. Meeting the credit rating requirement is essential. However, it can vary from one financial institution to another. Having a good repayment history and a credit score, normally 750 and above, can get you quick approval and competitive interest rates.
  4. Income source, job stability, and existing investments and savings are other criteria that are looked into.
  5. If you are applying for a loan as a co-applicant, then documents for both applicants would be required.
  6. The educational qualifications of the applicant will also be considered.

Documents Required for Home Improvement Loans

Documents that are required may vary from one lender to the other. However, some common documents that you must have in place to apply for Home Renovation Loans are mentioned below:

  • Valid identity/income/address proof
  • Bank statements and salary slips for the last three months
  • Income Tax Returns
  • All property-related documents with sanction map                               
  • Proof of educational qualifications

Conclusion

One of the biggest benefits of applying for Home Repair Loans is that you can get a higher loan amount, enjoy it at the lowest interest rates and repay it within your chosen tenure. You can also use a Home Loan interest calculator before you apply for a Home Renovation Loan and assess your monthly EMI.

EMI is based on the loan amount, tenure, and interest rate offered by the financial institution. Once you arrive at the ideal EMI amount, using the calculator, you can fill out an online application and take advantage of this loan to get yourself a beautiful, protected, and aesthetic house!