A guide for financing repairs, renovations, and upgrades smartly.

Your home isn’t simply a few walls; it’s the place where everything occurs. With time, however, even the most luxurious homes require a bit of attention. If it’s repairing the leaky roof, updating your kitchen, adding a new space, or giving your home a new coating of paint, renovations require money. This is where the home improvement loan could come in.

If you’re wondering about what an improvement loan for your home is and how it operates, particularly when it comes to the Indian context, this guide will help to help you understand it.

What is a Home Improvement Loan?

The home improvement loan (also known as a mortgage) is a kind of loan for homes that is specifically designed to assist homeowners in financing renovations, repairs, or improvements to their current home. In contrast to a personal loan that typically comes with higher interest rates, the mortgage for home improvements is secured by your home and comes with lower rates.

These loans are usually provided by NBFCs, banks, and even digital lenders like Easy Home Finance, and they’re used for anything from minor cosmetic improvements to structural fixes that require a lot of effort.

What Can You Use a Home Improvement Loan For?

The loans are extremely flexible. The funds can be used to fund a variety of work related to your home, for example:

• Plastering and painting
• Renovations to bathrooms or kitchens
• Upgrades to flooring (tiles or wooden floor, etc.)
• Electrical and plumbing work
• Structural repairs
• Partitions or room extensions
• Cabinets, grills, wardrobes,  and  false ceilings
• Incorporating energy-efficient systems such as solar panels

In a nutshell, whether functional or beautiful, the home improvement loan will help you increase the value as well as the safety of your house.

What is the difference between it and a Purchase Loan for your home? Purchase loan?

Both fall within the broad class of loans for homes in India. The home purchase loan is utilized to purchase a brand new ho, and a home improvement loan is designed to improve the property you already have.

The loans for home improvement tend to be smaller in size as you’re not purchasing a complete property, and they are processed more quickly, especially when they’re made through online lenders.

Who Can Apply?

If you’re the owner of a house and you earn a regular source of earnings (either self-employed or salaried), then you’re probably qualified. The majority of lenders will also consider your score on credit score, your repayment history, and your financial obligations. In certain cases, you could also apply for joint loans by submitting co-applicants to increase the likelihood of getting a loan.

Platforms such as Easy Home Finance make this process easier with paperless applications, quick approvals, instant approvals, as well as flexible EMI options that are tailored for your financial needs.

What Documents Are Needed?

Here’s a listing of the documents typically needed:

• Identity document (PAN, Aadhaar)
• Address evidence
• Evidence of ownership of property
• Income documentation (salary slips, PS bank statements, salary slips, or ITRs)
• Estimate or quote from the contractor (in certain instances)

Some lenders might request pictures of the property, or a report of a site inspection, before the final approval.

Why Choose a Home Improvement Loan?

This is why smart homeowners go for this option of financing:

1. Low Interest Rates: Because the loan is secured by your home, it’s more affordable than loans that are unsecured.
2. Improves Property Value: Home renovations boost the value of your house.
3. Flexible Repayment: Select from different tenures and EMI structures depending upon your earnings.
4. Tax benefits: If you are a taxpayer, then you might be eligible for the deduction of tax under section 24(b) for interest you pay, based on the type of your work.
5. Better than Savings: There’s no need to draw from your savings or investment accounts for emergency funds.

Final Thoughts

The home renovation loan isn’t only about fixing cracks or putting on the latest coat of paint. It’s about improving your daily living. When you’re preparing your house to sell, upgrading it to improve comfort, or fixing the wear and tear of your home, an improvement loan for your home in India is an efficient and affordable way to accomplish it.

With lenders such as Easy Home Finance, you are able to complete it quickly, eleelectronicallyand with complete transparency.