While you might have heard about a home loan, do you know that you can also get a home improvement loan? Your home is the most valuable asset that you possess which serves more than just giving you a roof above your head. It is a great investment that can get you good value if you maintain the property well. Also, your home determines the quality of your life and it is a big quotient of your happiness, comfort and peace. Hence, going for a home renovation or home improvement is a smart idea. But home improvement is an expensive deal which can cost you in lakhs. While you can liquidate all your investments or wait for months to save for it, a personal loan offers you a better deal. You can easily avail a home improvement loan with personal loan app.
The introduction of these loans has been a game changer in fulfilling the lifestyle aspirations of many Indians today. Below given are all the essential details you need to know about a personal loan for home improvement before availing one.
All You Need to Know About a Personal Loan for Home Improvement
- Financing of high value
A home improvement loan is available in big ticket size to fulfil the funding needs of the borrower. Home improvement can involve meeting a host of expenditures, right from purchasing new furnishing to repainting the house, installing necessary appliances, and the like. This is a huge expense. A home improvement loan can help you meet all these expenses without any restriction.
- Repayment tenure flexibility
Once you have availed a home improvement loan, you can select a suitable tenure for the repayment of your advance. When applying for the loan through a personal loan app, it only gets easier to manage your loan repayment with ease as you need to make repayments in easy EMIs over an extended tenure. Choosing an extended tenure can lower your monthly EMI burden.
- Funding for all home improvement needs
The financing needs related to home improvement can be diverse, ranging from professional fees of the interior designer to arranging supplies or getting the latest appliances. Since a personal loan for home improvement comes with zero restrictions to end-use and the approved amount is directly sent to your account, you can utilise the available funds as you want. You don’t have to give a detailed breakdown of your expenses to your lender.
- Quick approval
These loans also come with the feature of quick approval, which makes them the best option during emergencies. Home renovation is not always a choice, but at times, it might be an emergency situation. A leakage in the ceiling, changing old appliances, a natural calamity or such other situations can force you to take necessary steps immediately. In such situations, a personal loan can be your savior. You can apply for it through your mobile and the approval will come within minutes if you submit all the correct details and documents.
- Fast disbursal
Once the approval comes by, the loan is also quick to disburse. Ideally, with the best lending institutions in place, you can expect to receive disbursal of the approved loan amount into your bank account within a few hours of approval. This makes meeting your immediate financing needs possible without much wait. You can start the work without having to wait for days or months.
- Minimal documentation
The paperwork required for home improvement loans is also simplified. Most lenders ask for only a handful of documents like PAN card, Voter ID card, Aadhaar card, your income and employment proofs. Especially when applying with a personal loan app, the documentation is typically simplified and mostly paperless. So, you simply need to submit these documents online in the format specified by the lender.
- Simple eligibility requirements
The eligibility criteria for home improvement loans are simple, minimal, and easy to meet. This has made these loans more accessible across different borrower segments. Whether you are a government employee or a private employee or a businessman, you can avail a home improvement loan if you can show stable income proof. The lenders just check your age, income, financial stability, credit score and your repayment capability. Modern lenders are much more lenient when it comes to eligibility.
- Easy application procedure from any where
The availability of a personal loan app has further made these loans accessible to individuals at anytime and anywhere, thus defying geographical and physical boundaries. You simply need to download and install one of these applications on your mobile phone and register on it to proceed with you application involving a few simple steps only.
- Tax benefits
Tax benefits are another positive aspect related to a personal loan for home improvement. The instalments paid on a personal loan for home improvement is eligible for tax deductions under definite sections of the Income Tax Act, 1961. Both the principal repaid and the interest paid to the lender qualifies within the ambit of tax deduction.
Conclusion
A home improvement loan can be a secured or an unsecured loan depending on your choice. You can choose to put your house or any other asset as collateral, but this is not mandatory. Of course, going for a secured loan will bring you certain benefits, but are you comfortable freezing your asset is the question.
Also, make sure to compare different lenders based on the interest rate, processing fees, customer service, ease of operation etc. You can download a personal loan app and avail the finance with a few simple clicks.
