Home Improvement Loan

Basics of Home improvement Bank Loans

Home improvement loans are offered at lower rates & longer loan tenure than personal loan. One should consider financing their home renovation through improvement loans from banks, as against personal loans.

The interest rate is at home loan interest rate. The Loan amount eligibility increases with each repayment of home loan. Home improvement loan tenure can go upto 15 years, meaning lesser EMI when compared to personal loan of maximum tenure of 7 years.

Tax Exemption & Benefits

Upto 30,000 under Section 24b, but limited to/under home loan exempt of 2 Lakhs.

There is No prepayment charges on home improvement Loans. Choose between fixed & floating interest rates.

Covered under Home improvement loan ?

1). Property Renovation.

2). Wood Work, False ceiling, Kitchen Work.

3). Repair Work, Adding a room

4). Plumbing, Tiling, Flooring & Electrical works, Painting, Waterproofing.

Eligibility considerations for Top up Loan

If you have a home loan which is 6-12 months old, you may approach your bank and ask for

home improvement loan details.Interest Rate : Between 9.5% to 11%

Processing Fee : 0.5 to 1% of Loan Amount.

Interested applicants need to approach their home loan bank and ask for more details.

Why take home improvement Loans ?

1). Lower Rate of interest than personal loan offers.

2). Longer Loan tenure of up to 15 years as compared to personal loan(7-8 years)

3). Claim in Tax rebates up to Rs. 30,000

4). Go to your home loan Bank for Easier documentation.

5). More Loan Eligibility than in personal loan.