Take Out a Home Improvement Loan to Renovate Your House

Housing loans are a great deal for people who do not possess a significant lump sum amount of money. With the help of housing loans, individuals can construct or buy the house of their dreams. Housing loans are of different types and are for several purposes. You can also take a housing loan to purchase a readymade house on a plot. One can also opt for a housing loan for construction and build their home from scratch. Similarly, people can take a loan for renovation of a house with a reliable lender. Read on to learn more about housing loans for renovation/improvement.

Understanding the concept of a home improvement loan

A home improvement loan is for decoration and remodelling purposes. With the home improvement loan amount, homeowners can refurnish or redecorate an existing house. Like any other home loan, the applicant has to return the home improvement loan amount to the lender. The debtor returns the home improvement loan amount via EMIs over a given tenure. Debtors also have to pay interest charges for home improvement loans. Once the outstanding balance of the home improvement loan is paid off, the loan is closed.

There is no compulsion that a home improvement loan can only be used for a particular reason. People can renovate the exterior or interior of their homes depending upon their choice. People can also add extra features to their homes with a loan. These additional features can be added to improve comfort and convenience indoors. In addition, damaged furniture, appliance, walls, and other elements, can be repaired with a home improvement loan.

Why do people remodel their houses withTake Out a Home Improvement Loan to Renovate Your House

Housing loans are a great deal for people who do not possess a significant lump sum amount of money. With the help of housing loans, individuals can construct or buy the house of their dreams. Housing loans are of different types and are for several purposes. You can also take a housing loan to purchase a readymade house on a plot. One can also opt for a housing loan for construction and build their home from scratch. Similarly, people can take a loan for renovation of house with a reliable lender. Read on to learn more about housing loans for renovation/improvement.

Understanding the concept of a home improvement loan

A home improvement loan is for decoration and remodelling purposes. With the home improvement loan amount, homeowners can refurnish or redecorate an existing house. Like any other home loan, the applicant has to return the home improvement loan amount to the lender. The debtor returns the home improvement loan amount via EMIs over a given tenure. Debtors also have to pay interest charges for home improvement loans. Once the outstanding balance of the home improvement loan is paid off, the loan is closed.

There is no compulsion that a home improvement loan can only be used for a particular reason. People can renovate the exterior or interior of their homes depending upon their choice. People can also add extra features to their homes with a loan. These additional features can be added to improve comfort and convenience indoors. In addition, damaged furniture, appliance, walls, and other elements, can be repaired with a home improvement loan.

Why do people remodel their houses with a loan?

As discussed above, a home improvement loan can help people repair damages and give a new look to the house. A home improvement loan can also be taken to add some extra features to the house. However, many people opt for a home improvement loan to increase the value of their property. When someone remodels a place, its resale value rises, and the house can now be sold at a higher price because its look has been remodelled. By remodelling a home, one is preserving its value and adding customisations as per their preferences.

Key features of home improvement loans

Why do people opt for a housing renovation loan? Well, there are several features/benefits that compel borrowers to apply for home improvement loans. Here are some prominent ones.

• Since a home improvement loan is secured, a lower interest rate is levied by lenders. Therefore, most housing loans have a lower interest rate than personal loans. Be it construction loan interest rates or home improvement interest rates; they will be lower than personal loan rates.

• As per Section 24 of the Indian Income Tax Act, people acquiring a home improvement loan can get tax benefits. Individuals can apply for tax benefits of up to INR 30,000 on the interest charges paid to the lender for a home improvement loan.

• No restrictions are imposed on the usage of loans for specific home renovation activities. Borrowers will have the flexibility to use the home improvement loan amount as per their renovation requirements. The loan can be used for flooring, repair, furnishing, extension, interior, or other purposes. As long as you pay the home loan EMIs timely, no one will ask you for the spending details.

• One can get a long tenure for their home improvement loan. However, the applicant will end up paying more interest charges when the tenure for a home improvement loan is longer. Lenders can allow individuals to choose a repayment tenure of up to 15 years for a home improvement loan.

Final words

A home improvement loan can help boost the resale value of the property. Also, construction can weather away over time, and one can redecorate their house with an improvement loan. The house title deed, bank account statement, passport size photo, income proof, and other documents are asked for a home improvement loan. Apply for a home improvement loan with PNB Housing now!