Did You Know?
We serve loans, the best way you can borrow
Who doesn't want to make their home look beautiful? But every person has a different idea of what is beautiful. One may like trendy designs, whereas others might want to keep their homes traditional and old-fashioned. To get the home makeover that you want, you need to have sufficient funds to do so. Some home renovations are very costly, but if you get a loan, it will come at a lower interest rate.
There is no denying that home renovation loans in India have become one of the most popular sought-after loans. Many lenders offer such loans, each with its own rates. So, if you don't choose them carefully, you might pay more than you had planned. As such, every borrower needs to select a lender carefully. lendingplate offers home renovation loans at a lower interest rate.
With a loan to remodel your home, you will increase its resale value and make it look fabulous. In fact, you will be making your dreams come true without burning a hole in your pocket. There are many home renovation loans in India, which has made it easier for people to get the loans when in need.
Home renovation loans are the most useful source of funding for those who want to undertake home improvement projects. The loans are intended to be used for small, medium, and large home improvement projects. You can use the loan money to get a new kitchen, perhaps a bathroom, or even renovate the entire house. You can also use it to fix things like pipes, windows, doors, and any other type of maintenance-related issue.
Home renovation loans are based on after-renovation value. The lender uses the home's estimated value instead of the current home value to determine how much a person can borrow. This will help the homeowners have credit for the increased home value from the agreed-upon renovation.
This is the only type of loan that gives a homeowner credit for the future value of their home. The home's value can increase rapidly, which makes this loan a good investment. To get a good deal, you need to make sure that you choose the right lender.
Moreover, if you use the value after renovation, you will get a low-interest rate since the lender usually sets the rates based on the loan-to-value ratio. The lender must also ensure that he does not lend more than the property's current value. Thus, you need to take a home remodelling loan from a reliable lender who will lend you only as much as the property is worth.
You may also read this: Reasons to apply for a personal loan
Home renovation loan comes with some unique features, which are as follows: -
You have the flexibility to choose the loan amount as per your home renovation requirements. You may want to paint the walls, get the leaking ceiling repaired, get a modular kitchen or just want to get kitchen repairs; you can choose the amount accordingly.
These loans are offered at competitive interest rates. You may qualify for a loan at a lower interest rate depending on your credit score and other eligibility factors. This will reduce your overall borrowing cost.
Flexibility is the major advantage offered by a home renovation loan. Lenders give you various repayment options, and you can choose the one depending on your financial situation. You can choose the plan that suits your budget, which can range from a shorter tenure to an extended repayment period.
Many lenders have streamlined the application process, due to which the loan is approved very fast. After the loan is approved, the funds are credited to your bank account within a few hours. Hence, you can start your renovation work on an immediate basis without any delays.
A personal loan for home renovation can now also be applied for online, which requires minimal paperwork. You just have to provide basic documents like identity proof, address proof, income proof, and financial documents. Because of the digital application, you can apply for a loan from anywhere with the help of your mobile phone or laptop.
Home renovation can improve the way your home appears and also the comfort level. However, this can add up to a lot of expenses. A home renovation loan can help you upgrade the house without sacrificing your savings. Here are some major benefits of these loans: -
You don’t have to sacrifice your savings, as a home renovation loan offers you enough funds to upgrade your house. You can repay the loan in easy instalments over time, which reduces the overall financial burden.
Renovation can help increase the market value of your house. A modern kitchen, an additional bedroom, bathroom improvements, flooring & painting and other kinds of upgrades can make your property more appealing and help you sell it at a higher value.
You can repay the personal loan for home renovation in fixed monthly instalments. You should take care in choosing a suitable tenure so that the monthly repayment remains affordable.
A home renovation loan can be used for various expenses like fixing leaked ceilings, painting walls, kitchen remodelling, bathroom upgrades and various other home improvement expenses.
Renovation can help improve old infrastructure, improve safety measures and make your living space more comfortable and functional. Moreover, you can also bring changes in your home as per the latest technology and changing environment.
A home renovation loan gives you quick access to funds and helps you renovate your home. But this borrowing also comes with certain costs and responsibilities. Hence, before you apply for this loan, it's necessary to understand its drawbacks, which are as follows: -
A home renovation loan comes with interest costs. It increases the overall cost of renovation. The overall interest expense is determined by the loan amount, interest rate and repayment tenure.
You have to repay the loan in monthly instalments. At times, you may find it difficult to manage the monthly EMIs with changes in income or expenses.
Lenders evaluate your income, employment, present debts, and credit history before approving the loan. If your income is unstable and low, or your credit profile is not so strong, then it can reduce your borrowing options, or it can lead to a loan with less favourable terms.
Other than interest, lenders also charge processing fees and various other charges. These charges can increase your total borrowing cost. Hence, you should review the loan agreement properly before accepting the offer.
If you delay or fail to make payment of the loan EMI, then it can have a direct impact on your credit score. It will lower your credit score, which makes it difficult to get loans in the near future. Moreover, you will also have to pay late payment charges.
Do you want to get a loan to remodel your home? Then the following are some of the eligibility criteria that you need to fulfil in order to get a loan easily:
The minimum age requirement for a home renovation loan in India is 21 years. If you are under 21 years of age, then you can be given the loan.
The borrower should be a permanent resident of India and show proof like your ID.
The borrower should have proof of income from the employer or from self-employment to be eligible for a home renovation loan in India. The salary slip may not be required by some lenders, but the employer's letter should suffice. The borrower must have had a steady source of income for the past three years, with at least six months' evidence of regular income within that period.
Can anyone apply for a home renovation loan in India if he provides proof of their employment status? The answer is yes. You are eligible for the loan if you are employed as well as self-employed. If you are unemployed but have a good source of income, you are eligible for the loan. However, many lenders require borrowers to be employed to avail of the loan. As for the self-employed, they stand a good chance of getting the loan too if they prove their source of income.
You should know by now that a home renovation loan requires you to submit some documents during the application. Some of the documents include
Proof of Income: This is needed to demonstrate that you can afford to pay the loan. The lender will need your payslip if you are a salaried person and bank statements showing the credit made for six months. If you are self-employed, you will be required to submit proof like bank account statements. If you are self-employed, you should provide your bank account statements.
Identity Proof: You should provide your official documents to prove that you are an Indian citizen. A valid ID is mandatory for all people who wish to apply for a home improvement loan. An Aadhar is also a must as it shows your identity.
Residential Proof: You will also be required to provide your residential proof as it shows a secure address for the borrower. You should show a valid passport, electricity bill or water bill, Aadhar card, or voter's card.
Loan Details: Not only will you be required to submit some documents, but you will be asked to provide some details as well, like the cost of the home improvement loan and the purpose of the renovation. This information will help the lender understand what you want to improve and help him assess your loan repayment capacity.
If you have all these documents and qualify for a loan, apply as soon as you need the funds. You will find many lenders offering such loans. But, your priority should be to get a lender like lendingplate that offers home renovation loans at a lower interest rate as low as 5% per month in India.
You may also read this: Apply for a personal loan in Delhi
You may feel like using your savings for home renovation because it saves you from borrowing and interest burden. But home renovation at times can be a very practical solution, and here is why: -
A home renovation loan helps you renovate your house without affecting your savings. You can preserve your savings for emergency situations like a medical emergency, job loss, urgent car repairs, sudden travel, etc.
With the help of a loan, you can convert a large renovation expense into manageable EMIs. This helps in managing your household budget without withdrawing funds from savings.
By retaining savings, you can focus on other important expenses. This includes education expenses, insurance premiums, investments, or any other planned purchases.
With the help of a home renovation loan, you can upgrade your house, which makes it more functional and comfortable. You can use a home renovation loan for the following expenses: -
The loan can be used to upgrade the kitchen with new cabinets, countertops, storage solutions, appliances, flooring, lighting, and other improvements. A remodelled kitchen can make the kitchen more attractive and practical.
Loan funds can also be used to upgrade the bathroom with new tiles, sanitary fittings, shower systems, bathtubs, vanities, plumbing fixtures and improved ventilation and lighting.
One can also use funds for painting walls, replacing flooring, applying wallpaper, upgrading lighting and purchasing or replacing fixtures. These refreshments can improve the overall appearance of the house.
A loan can also be used to fund essential repairs, which include rewiring, replacing damaged pipes, fixing leaks, repairing walls, improving electrical systems and addressing other structural issues. This can improve the safety and functionality of your property.
If your home is small, then you can use the loan funds to construct an additional room, extend a space or make other approved structural modifications.
Home renovation loans have become inevitable in a country like India, where people are living in cramped conditions. The country's population is increasing daily, and people are living in homes with very little space. Due to this, most of them are looking forward to renovating their homes to give them the comfort they desire.
But the process of getting home renovation loans can sometimes be quite complex. This is where lendingplate comes into play. lendingplate helps offer home renovation loans at a very cheap rate. It enables you to find a loan with both reasonable interest rates and easy terms. The lender is willing to give loans even to those who have gone through several hardships as long as they can improve their financial condition and pay back the loan on time. lendingplate states its commitment to customer satisfaction in every aspect.
You can get home renovation loans at lendingplate by following the simple steps below:
The need for home renovation loans for homeowners has increased recently, with many wishing to live to their fullest in a nicely made home. If your requirements are relatively well-defined, then it is recommended that you consider applying for a home improvement loan as soon as possible.
Home renovation loans can be easily availed in India by applying online. The best part about this loan is that the lender uses the estimated value of your house after the renovation to determine the loan amount. This will help you get a good deal while getting a remodelling loan.
Yes, many lenders offer standalone home renovation loans for which you don’t necessarily need to have an existing home loan. However, eligibility for this loan depends on your credit score, employment, income and repayment capacity.
Your loan is not approved based on your income. Various other factors are also taken into consideration, like your existing financial obligations, credit score, and lender’s policies. But higher income and good repayment history can improve the chances of your loan approval.
A home renovation loan generally covers expenses like structural repairs, painting, flooring, plumbing, roofing, modular kitchen, bathroom upgrades, etc.
Yes, some lenders can allow you to use the loan for interior design work and certain furnishing-related expenses. But this permission can vary among different lenders, so it's better to check the lender’s terms and conditions.
A home renovation loan may offer suitable terms for renovation-related expenses. However, the best option depends on various factors like loan amount, interest rate, tenure, and eligibility requirements.
The interest rate of home renovation loans in India can vary among different lenders depending on credit score, income and loan tenure. Borrowers should compare various lenders so that they can get a loan at the lowest interest rate with favourable terms.
In general, a home renovation loan can take 3-7 working days for approval and disbursal. However, this also depends to some extent on the lender’s process and documentation requirements. Some lenders can offer faster approvals, and some can take longer time.
This can vary from lender to lender, but they still prefer applicants with a higher credit score and good repayment history. A higher credit score will improve the loan approval chances and loan terms.
Yes, self-employed individuals can also apply for a home renovation loan. They will have to provide income proof, business documents and other financial records.
Some lenders can ask for renovation estimates, contractor quotations or a cost breakdown to assess the funding requirement. This can vary from lender to lender.
Download our personal loan app to apply for a personal loan. Get up to 2Lakhs* as a personal loan. Download Now!
Sign into avail a personal loan up to ₹ 2,50,000
Unifinz Capital India Limited is a Non Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). lendingplate is the brand name under which the company conducts its lending operations and specialises in meeting customer’s instant financial needs.
RBI CMS
RBI Sachet
