Your quick guide to home improvement loan

Home is a place where most of our dreams blossom, where we create memories for a lifetime, it is more than just a shelter, it is that significant place on the land that belongs to us and reflects our lifestyle. Therefore, our home is a very dear place to all of us. Keeping it beautiful, tidy, well furnished and upgraded is what we all dream of.

However, renovating your home and accommodating some major changes in its infrastructure, furniture, aesthetics etc, may feel heavy on your pockets. For most of the people, even owning a home of their own in this age where there is a lot of space crunch is still a dream. And for those who are lucky enough to have it, there are possibly many changes and renovations that they wish to make with changing trends, lifestyle and the advancement of modern technology.

If you are among such people and want to accommodate some major renovations and improvements in your home but do not have sufficient funds ready, don’t worry! We are here with a quick guide to home improvement loan which you may find very useful and will help you in transforming your home according to your dreams and wishes.

Home improvement loan is the best option when you wish to remodel your home as per your dreams but fall short of savings. Any major changes in the infrastructure, furnishing or any other thing that enhance the aesthetics of your home require a huge sum of money to be spent. In such a case, you can avail a home improvement loan and can make your dream come true. Here’s how.

What are the eligibility criteria for home improvement loan?

We have listed a few general eligibility criteria that you must know while considering a home improvement loan.

Age limit:The minimum age for applying for a home improvement loan is 21 years of age. The maximum age is, however, restricted to the age of retirement of the applicant.

For jointly owned property:If the property in question for which you are applying the home improvement loan is jointly owned, it is necessary for all the owners to apply for the loan.

The required documents

While applying for a home improvement loan, there is certain documentation that you need to keep ready with you. We’ve listed below the necessary documents which you’ll require so that the entire process of the loan runs smoothly and hassle-free.

Identity proof and residence proofwhich may include passport, Adhaar card, voters ID card, Driving license, electricity bill of recent months etc.

Income or salary proofwhich includes the salary slip of last three months, bank statement of last six months, recent form 16 and the income tax returns.

Necessary documents of the propertywhich includes the original title deed of the property, statement of the approximate or the estimated amount of expenditure to be spent on the home improvement, No-encumbrance certificate, photographs etc.

Tax benefits

Another reason that makes the home improvement loan more attractive is the tax benefits that it offers. The section 24 (b) of the income tax act states that you can avail a deduction of up to Rs. 30,000 per annum.

This can result in a lot of savings on the entire loan and can save you a heavy sum.

So, if you want to remodel your kitchen, bathroom, bedroom, or want to add some new furniture to your living space or want to give the old plain walls of your room a new look and life, applying for the home improvement loan will seem to be the best option for you.