Being able to finally buy your own house is definitely a proud achievement. However, buying a house is just the start. Once you begin to live in your new home, it is bound to go through normal wear and tear. It is very important to make sure that your house is regularly maintained. After a couple of years, the walls of your house might require a new paint job, or the tiles of your floor need to be replaced. Some people might just prefer to renovate the entire house. These are important steps in maintaining your home and making sure that its value goes up.
Now, a house renovation can amount to quite the expense. If you are not comfortable with using your personal savings for these expenses, one effective way to deal with them is to go for a home improvement loan. This loan can take care of all the expenses you incur for the renovation of the house.
If you have never heard of a home improvement loan before, let’s take a look at the best reasons to apply for one:
- A home improvement loan is very flexible
After receiving the loan amount, you can spend the funds for various purposes. It could be for covering repair costs, having a room extension, building a new balcony, or any other work to be done for your home. The loan amount can cover these expenses and help in keeping your savings intact!
- You can get a competitive interest rate on this loan
Borrowers also have the option of taking a personal loan to cover the renovation expenses. However, do note that a personal loan interest rate could be higher than that of a home renovation loan’s rate. The reason why going for a home renovation loan is ideal is that its interest rate is often at par with that of a home loan interest rate.
- Borrowers who apply for this loan are eligible for tax benefits
Borrowers who have taken a home improvement loan are eligible for tax deductions on the loan’s interest component. According to Section 24 of the Income Tax Act, the interest paid for a home improvement loan can be claimed for a tax deduction of Rs 30,000.
- Lenders have minimal documentation requirements for this loan
Some people might think that a home improvement loan’s documentation process would be similar to the documents required for a home loan. However, this is not true. When you apply for a home loan, your lender would require numerous documents for verification purposes. When it comes to a home improvement loan, lenders only require basic documentation such as identity proof, income proof, the title deed of the property, and so on.
Finally, at the end of the day, coming back to a newly renovated home from a stressful day at work is a great way to lift your spirits. Also, make sure to check your eligibility for a home improvement loan with the lender before applying for one.