Home Improvement Loan
Home Renovation Loan, also known as Home Improvement Loan, is offered to consumers seeking finance for upgrading, refurbishing or repairing their house property. Both existing home loan borrowers and new customers avail home renovation loans. Most banks, nonbanking financial companies (NBFCs) and housing financial companies (HFCs) provide this facility either through their regular home loan product or as a separate offering within the broader category of home loans.
Eligibility Criteria for availing Home Improvement Loan
- Resident Indians are eligible to apply for a home improvement loan. Some lenders also offer home renovation loan to NRIs
- Age: Lenders generally offer Home Renovation Loans to fresh loan applicants or existing borrowers (in case of balance transfer) aged 18 years and older. However, lenders usually require their home renovation loans to be repaid by the time the borrower is 70 years old.
- Both salaried and self-employed individuals/business owners can apply for a home improvement loan
- Borrowers can also enhance the eligibility of their home loan by adding co-borrower(s), selecting a longer loan tenure or providing an additional source of income
- Credit Score: Loan applicants having a credit score of 750 and above stand a higher chance of availing a home improvement loan. Many lenders also provide home improvement loans at lower interest rates for applicants with higher credit scores.
Documents Required for Home Renovation Loan
The documentation process for a home renovation loan is similar to documentation for regular home loans. Following are some of the main documents required in order to apply for a home renovation loan:
- Duly filled application form
- Age proof
- Income proof
- Proof of employment/business
- Address proof
- Property documents
- Estimated repair cost quotation
