Follow Eligibility Criteria For Home Improvement Loans

People seek home improvement loans to refurbish, upgrade, or repair their houses. Mainly these loans are to upgrade the house to make it more comfortable to live in. A self-employed or salaried individual is eligible for a home improvement loan and can apply if needed.

The loan can be applied individually or jointly, and the eligibility criteria will remain the same. Home improvement loans are different from standard Home Loans. With this loan, you can get the tiling, flooring, painting, and plastering cost of your home.

Before choosing a home improvement loan, properly analyse interest rates, loan tenure, and documentation requirements of the lender.

Home Improvement Loan Interest Rates & Loan Tenure

Interest Rates

Lenders usually offer home improvement loans with fixed interest rates; it may differ based on the sanctioning procedure.

Factors that come into play for determining the interest rates are the monthly income, loan amount, credit score, occupation, and employer’s profile (for salaried individuals). Home improvement loans are similar to standard loans Home Loans; you can get Home Loan top up feature as well.

Loan Tenure

The lenders usually offer home renovation loans for tenures of up to 10 years. Besides that, some lenders offer loan tenures extending up to 15 years. Applicants can choose their loan tenure as per their loan-paying ability.

The Eligibility Criteria And The Documents Needed (For Salaried Individuals)

Customers can apply for home improvement loans either jointly or individually. Multiple owners of property for house renovation loans can be considered co-applicants. The Documents required to apply for Home Loan improvement are:

1.     Income Proof:

The applicants need to provide the salary slips from the last three months along with bank statements and display the salary credits. In addition, they are required to show the salary credits from the past six months along with the new IT returns and Form-16.

2.     Identity Proof:

A voter ID, a valid passport, an Aadhaar card, or a driving license is needed to get the loan approved. A loan borrower must ensure that their house address, name, and date of birth on their identity proof are accurate.

3.     Other Documents:

The applicants need to provide proof of their contribution, an appointment letter if they have been working with a company for less than a year, or a contract of employment. Should the applicant have any ongoing loans, they can provide a bank statement of the last six months showing repayment.

4.     Property Documents:

You need to submit the original property title deed and the evidence of no encumbrances on the land. In case there are multiple owners for a single property, they all have to submit their identity proof attached to the property document.

The Eligibility Criteria And The Documents Needed (for self-employed)

Physicians, lawyers, architects, and other self-employed professionals can also avail of home improvement loans.

House improvement loans can be obtained jointly or individually, with the regulations for the co-applicants being the same. The listed documents are needed for self-employed applicants.

1.     Income Proof:

The IT returns and computation of income for the last three assessment years, including the details about the profit and loss account, the balance sheet, and schedules annexures for the last three years. In addition.

2.     Identity Proof:

Aadhaar card, voter ID card, valid driving license, or a valid passport is needed as identity proof. Along with that, borrowers need to submit their business details. It is necessary to disclose the firm’s GST with its annual income slab.

3.     Other Documents:

A business profile and the latest Form 26 AS are required. Suppose the business entity is a company, the articles of association and memorandum of association are required by the bank, along with the names of shareholders and directors. Other documents will be required depending on what type of entity it is.

4.     Property and Home Documents:

Original title deeds of the property are required, in addition to the proof that there are no burdens associated with the property. Plus, if there are two or more owners of the property, they all have to present valid identity proof of their business and home.

Conclusion

Home improvement loans are a huge help if the aim is to refurbish the house. Borrowers should keep their identity proof updated to get in touch with the right lender for a home improvement loan to make their loan easy and hassle-free.