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All you need to know before you get a home renovation loan

You can get a home renovation loan as a top up to your housing loans or by itself too. To avail of a home renovation loan as a top you need to meet specific criteria though. Here’s the eligibility you need to meet.

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All you need to know before you get a home renovation loan

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  1. All you need to know before you get a Home Renovation Loan

  2. Home finance is an extremely versatile financial tool. • You can use some it to purchase a new home, to construct a new home or even to renovate your existing loan. • When you buy new home, you need to maintain it too, in order to keep it look as good as new. • But home renovations can get very expensive, and if you already have home loans to pay off, it can be difficult to save enough money for a home renovation. • But home finance a solution for that. You can apply for a home renovation loan to provide for it.

  3. You can get a home renovation loan as a top up to your housing loans or by itself too. • To avail of a home renovation loan as a top you need to meet specific criteria though. • Here’s the eligibility you need to meet.

  4. Minimum Period • You need to have started repayment of your housing loans and paid housing loan interest for a certain period before you are eligible for your home renovation loan top-up. • The minimum period can be different for different banks.

  5. Loan to Value Limit • LTV is the amount you’re can borrow on your existing housing loans. • The ratio is usually fixed at 80-85% of the present value of your property. 

  6. Tenure • Your top-up loan tenure cannot exceed the remaining term of your home loan. • The tenure of a top-up loan runs concurrently with the home loan tenure and both loans should be paid up at the same time.

  7. If you wish to get a home renovation loan by itself, here are five things you should know about it.

  8. How to apply • If your home is under a co-ownership then you should have your loan co-signed by the other owner.

  9. Tenure of Home Renovation Loan • The tenure for this loan is very flexible. You can get loan from anywhere between 12 to 360 months.

  10. Documents you will need • The person applying and the co-signee have to give their documentation for the loan. This includes a KYC, salary slips, bank documents, house agreement, and the expansion layout if they want to make extensions on the property. • One may also require a No Objection Certificate (NOC) by the municipal/building/ housing board. • Make sure all your plans are authorised by your local authority.

  11. What about EMIs • If you apply for this loan as a top-up for your home loans, then the EMI will be added to your existing interest rate and you will have to pay only one EMI.

  12. Thank You

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