Owning a home is an experience of its own. After years of hard work & sound planning, we invest in a house to secure the future of our loved ones. After all, it's one of the basic necessities in life, isn’t it? Having a home that we can call our own has multiple benefits. It not only provides shelter, but also acts as an investment apparatus.
Home improvement such as renovation, furnishing, repainting are some of the activities which are a part of living in a house. Some aspects of the house need periodic maintenance in order to keep them strong and going. The costs involved in carrying out home improvement services can be a burden on your savings depending on the quantum of work carried out. It has the potential to take a toll on your monthly budget as well. In such situations, it makes perfect sense to rely on a Home Improvement Loan offered by banks and NBFC (Non-Banking Financial Corporations) to get the work done. It works similar to a conventional housing loan.
Let's explore the process of applying for this loan along with per-requisites. Homeowners can apply for this type of housing loan.
In case of co-ownership, all owners are required to jointly apply. Applicants who’re not co-owners can also apply to add monetary weight to the application.
The first set of documentation consists of the application form, identity & address proof of the applicant(s) along with recent photographs and income proof documents such as payslips.
On the property front, documents such as title deeds, an estimate of works provided by an engineer/architect should be provided as second set of documents.
Home improvement such as renovation, furnishing, repainting are some of the activities which are a part of living in a house. Some aspects of the house need periodic maintenance in order to keep them strong and going. The costs involved in carrying out home improvement services can be a burden on your savings depending on the quantum of work carried out. It has the potential to take a toll on your monthly budget as well. In such situations, it makes perfect sense to rely on a Home Improvement Loan offered by banks and NBFC (Non-Banking Financial Corporations) to get the work done. It works similar to a conventional housing loan.
Let's explore the process of applying for this loan along with per-requisites. Homeowners can apply for this type of housing loan.
In case of co-ownership, all owners are required to jointly apply. Applicants who’re not co-owners can also apply to add monetary weight to the application.
The first set of documentation consists of the application form, identity & address proof of the applicant(s) along with recent photographs and income proof documents such as payslips.
On the property front, documents such as title deeds, an estimate of works provided by an engineer/architect should be provided as second set of documents.
Once the paperwork has been submitted, the processing begins. Depending on the quantum of loan applied for and other determinants such as the creditworthiness of the applicant, a decision on the loan application would be made within the stipulated time. You may be required to provide additional paperwork during the processing phase.
Security
The property for which the loan has been availed will act as the collateral until full repayment of the loan. Some banks may even require an outside guarantor or additional monetary security other forms depending on multiple factors.
Loan Mechanics
Depending on the bank and other factors, you may be offered anywhere between 80-90% of the project costs as loan. Once approved, the loan amount may be offered as lump sum or released in batches depending on the schedule of work.
Repayment Process
Repayment of the borrowed amount along with applicable interest charges will be on the basis of EMIs (Equated Monthly Installments). Normally, the tenure offered is up to 15 years, depending on the offer.
Before applying for a home improvement loan, it's imperative to compare offers from various lenders and make a wise selection. Aspects such as processing fee, pre-payment penalty and others should be taken into consideration before zeroing down. The easiest way to learn about the products will be to scout for available resources on the internet. You should also use an EMI Calculator to work out the financials.
The property for which the loan has been availed will act as the collateral until full repayment of the loan. Some banks may even require an outside guarantor or additional monetary security other forms depending on multiple factors.
Loan Mechanics
Depending on the bank and other factors, you may be offered anywhere between 80-90% of the project costs as loan. Once approved, the loan amount may be offered as lump sum or released in batches depending on the schedule of work.
Repayment Process
Repayment of the borrowed amount along with applicable interest charges will be on the basis of EMIs (Equated Monthly Installments). Normally, the tenure offered is up to 15 years, depending on the offer.
Before applying for a home improvement loan, it's imperative to compare offers from various lenders and make a wise selection. Aspects such as processing fee, pre-payment penalty and others should be taken into consideration before zeroing down. The easiest way to learn about the products will be to scout for available resources on the internet. You should also use an EMI Calculator to work out the financials.
Very nice post.
ReplyDeleteYou can apply for Home Loan with Finbucket.
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