Everything You Should Know About Home Improvement Loan

In recent times, the expenses of home renovation have become quite substantial, thereby straining one’s finances. In that case, one can consider availing of a home renovation loan to secure the requisite funding. Several financial institutions provide these advances against simple eligibility criteria, thus making them easily accessible.

Since it is a type of personal loan and available with zero security, individuals can avoid the hassles of providing property as collateral. Additionally, lenders offer quick and hassle-free approval of these advances, fulfilling the renovation funding needs of homeowners in minimum possible time.

Therefore, individuals who are planning to renovate their homes soon should know about home renovation loan in detail. The common features and benefits of a personal loan for home improvement are given below.

Features and Benefits of a Personal Loan for Home Improvement

  • Fast approval and disbursal – 

Applicants can avail fast approval on their loan for home improvement, which will enable them to save a lot of time. After the lender completes document verification, the amount is disbursed to the borrower shortly. With some lenders, such disbursal can complete within 24 hours of approval. 

  • Flexible tenure – 

Borrowers can choose a repayment period according to their convenience when they opt for a home improvement loan. Such flexibility enables them to make a suitable repayment plan that fits their financial capacity.

However, while selecting a repayment period, individuals must remember that the loan tenure is inversely proportional to the EMIs payable and interest accrual. It means that the longer the repayment period you choose; the higher will be the EMI amount as well as the total interest payable. You can utilize a personal loan calculator to select a suitable tenure.

  • Easy-to-meet eligibility criteria

The eligibility requirements for a personal loan for home improvement are given below – 

  1. Applicants must qualify as residing citizens of India.
  2. They should be within the age group of 23 – 55 years.
  3. They should maintain a CIBIL score of 750 or above.
  4. They should also be a salaried applicant employed at a reputed MNC, a public or private company.

Applicants must go through the eligibility criteria set by their selected lender before applying for a home improvement loan as some requirements may vary. If he or she fails to meet the criteria, their loan application may get rejected, which will affect their CIBIL score.

Additionally, before applying, applicants must check the minimum income required by the lender to avail of a personal loan based on their city of residence. 

They can also use a personal loan eligibility calculator to compute the home improvement loan amount they qualify for based on their current income and monthly expenses.

  • Hassle-free online application–

These advances come with a simple online application process and involve minimum hassle. Individuals can complete the online application procedure by following the steps given below to avail a home improvement loan – 

  1. Compare the home improvement loan interest rate offered by different lenders to select a suitable loan offer.
  2. Visit the selected lending institution’s official website.
  3. Navigate to the online loan application form and provide personal, financial and employment details.
  4. Verify the details filled in and proceed to submit the form.

In addition to that, some financial institutions such as Bajaj Finserv also bring pre-approved offers to make loan processing hassle-free and quick. Such offers can be availed on several financial products, including credit cards, business loans, personal loans, etc. You can check your pre-approved offer by only entering your name and contact information.

  • Minimal documentation

Borrowers need to submit the following list of documents during the application procedure to avail of a personal loan for home renovation – 

  • KYC documents – Aadhaar, PAN, Voter ID, or any other officially valid documents.
  • Income and employment proof–Salary slips of the last three months, employee ID card, salary account statements for the previous three months, etc.

Apart from knowing about personal loans for home improvement, borrowers should also learn about the mistakes to avoid when they start their home renovation project. Moreover, they should know about the fees applicable to their home improvement loan and make sure that there are no hidden charges before signing the loan agreement document.

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