A survey conducted in 2019 found that the median expenditure for home improvement was around Rs.3 lakh.
Since remodelling can be an inexpensive affair, one can apply for a collateral-free Home renovation loan to avail substantial funding. In addition to that, individuals who have a high credit score and satisfy other eligibility criteria can get approved quickly by lenders and receive the required amount within a few days.
Listed below are several other reasons why you should apply for a home improvement loan –
Flexible repayment period –
A personal loan for home renovation comes with flexible tenor options of up to 60 months. You can thus opt for a tenor period based on your repayment capacity, thereby reducing your financial burden in the long run.
Hassle-free application process –
The application procedure for a home improvement loan is hassle-free and straightforward. You can quickly complete the procedure online by following a few easy steps.
The steps are as follows –
Step 1: Visit your lending institution’s official website and go to the personal loan section.
Step 2: Click on the application form and enter your personal, financial and employment details. Ensure that all information entered is correct so that the application is not rejected.
Step 3: Next, enter the loan amount and repayment period and submit the form.
Step 4: Once, your application is approved, you will be contacted by the financial institution. Provide all the required documents to receive the amount quickly.
Income tax benefits –
You can avail income tax benefits under Section 24(b) on a personal loan for home renovation or improvement. Under this section, an individual can claim income tax exemption of up to Rs.30,000 on the loan interest paid.
Nominal documentation –
The application process for a home renovation loan involves nominal documentation. Keep the following handy for a hassle-free application process –
Any KYC document such as PAN, Aadhar, driving license, passport, voter ID card.
Salaried applicants – Employee ID card and salary slip for the last 2 months.
Bank account statements for the last 3 months.
Applicants should bear in mind that apart from above mentioned, lending institutions may ask for any other relevant documents.
Pre-approved offers
NBFCs like Bajaj Finserv also provide pre-approved offers to customers, which aid in a quick and efficient loan application process. These offers can be availed on personal loans, business loans, credit cards and a host of other financial products. You can check your pre-approved offers by entering only your name and contact information.
Before applying, you can use online financial tools like a online personal loan calculator to find out the exact amount that you need to pay as EMI.
Go through the steps below to know how you can use a personal loan calculator –
Visit the personal loan section of your lending institution’s website.
Click on personal loan EMI calculator.
Enter the loan amount, tenor, and personal loan interest rates.
Once you submit the above information, the calculator will show the loan EMI, total interest payable and total repayment amount.
You can increase or decrease tenor and loan amount as per your convenience to calculate the EMI suitable for you. Since it will calculate the total amount payable along with monthly instalments, it will enable you to ascertain your repayment capacity and plan a suitable financial budget.
Applicants should also go through the eligibility criteria for a home renovation loan as specified by a lending institution before applying. It is essential as if they fail to meet the requirements, their loan application will get rejected, which will lead to a decrease in their credit score.
