Get The Benefits Of A Home Improvement Loan
Buying a house doesn’t mean that one has purchased a home. A house becomes a home over time, thanks to bonding between family members and the memories that get created. Another aspect that plays an important role in making a house into a home is home improvement or renovation. However, home improvement isn’t cheap. Depending on the contractor and the quantum of renovation that needs to be done, the cost of home improvement can easily run into a few lakhs. Interior decorators could charge around Rs 1000 to Rs 1500 per square feet in leading cities. This would mean, a 1000 square feet house could cost around Rs 10 to Rs 15 lakhs to be renovated. This is where home improvement loans come into the picture. It ensures that you can invest considerably on renovating without compromising. You also don’t need to worry about whether you have to spend a large amount immediately out of your pocket. There are quite a few benefits offered by home improvement loans.
Here are some benefits of home improvement loans.
Competitive Interest Rate as compared to other options
When procuring a loan for any purpose, one of the key elements to look out for is the interest rate implied on it. This where the home renovation loan wins when compared to availing a personal loan for the latter is typically quite high, given the fact that it is an unsecured loan. Therefore, it is a no-brainer that home improvement loans are cheaper as compared to personal loans. This would result in significant savings for a borrower..
Tax Benefits
Tax benefits are perks that everyone wants to have as who opposes to some extra savings. When applying for a home improvement loan, you are entitled to deductions of up to Rs. 30,000 per annum, as mentioned under Section 24, on the interest you are going to pay against the loan. This deduction applies to the interest payments on the home purchase and home improvement loans put together qualify of up to Rs. 2 lakh. The tax benefits involved in this lowers the overall cost of borrowing, which is a win-win situation for the borrower.
Lower EMIs
When we buy a home, we are already making an expensive investment in our future, and it takes away a large chunk of our monthly salary. If we add to this the renovation cost, this becomes unbalanced equity for a salaried person. The home renovation loan becomes a boon to the borrower as the EMIs included with them are quite low for a more extended period; which would mean a lot more savings. Thus if you are a salaried person, secured home improvement loans are always the best option to maintain the cost incurred monthly.
Minimal Documentation Involved
One of the most tedious processes involved in procuring any loan is the document required to validate your loan request. Home improvement loans entail relatively fewer documents when compared to other loan approval processes. If you have already taken a home loan from a lender, and then you approach them for a home improvement loan; this would require less paperwork. Most of the times, the lender would directly initiate a loan disbursal against your request, but there might be some instances where a physical check of the property conducted.
Flexibility of Usage
Home renovation loans are your answer to any of the improvements you want to make in the house. Once you have acquired the funds, you can remodel or revamp your house. The renovation can be anything from making a balcony or extending a room or be it improving the wardrobes, or it may be anything you wish to add on to this list. This kind of loan gives you the flexibility to enhance any work that pertains to the structure of your home.
Home renovation loans enable a home owner to invest substantially in renovating her home. Renovating our home instils great confidence and helps maintain a peaceful space of mind. A home renovation loan can help you to inch closer to having that perfect home of your own by offering a substantial amount to spend on customising. (Suggest Lenders for Home Improvement Loans) Those who are looking to avail of a home improvement loan can consider Muthoot Fincorp as it offers comprehensive home improvements loans at attractive interest rates
