A home renovation not only adds value to the aesthetics of your home, but also adds to your comfort and the property’s net worth. However, home renovation can cost several lakhs, which is no easy feat to save for. This amount increases if you plan to construct or modify existing structures, be it a new garage or converting an attic into a baby’s room.
To fund the refurbishment without any compromises, avail a loan against property for home renovation. Here’s why it is a good option.
Simple eligibility criteria to qualify for the loan
A home renovation loan is easier to apply and qualify for than certain other loans. This is because the loan against property eligibility criteria are simple and relate to your age, income, and property. Meeting the eligibility criteria required by your lender can get you fast approval.
So, apply for a Loan Against Property for Home Renovation with reputed lenders like Bajaj Finserv basis simple eligibility criteria as follows:
- If you are a salaried applicant, your age should be between 33 and 58 years. You should be able to show proof of stable employment in an MNC, a public sector organisation or a private company. Further, you should either reside in or own a property in a city approved by the lender.
- As a self-employed applicant, your age should be between 25 and 70 years. You should have a regular income and reside in a city which Bajaj Finserv services.
Minimal documentation to prove your eligibility
The loan against property documents required are also minimal, so you can focus on renovation rather than applying for the loan. Though the requirements vary across the lenders, here’s the usual list you’ll need to submit.
Income proof: Salary slips, Form 16, bank statement, ITR
Identity proof: PAN card, passport, Aadhaar card
Address proof: Voter’s ID, driving license, ration card
Copy of property documents: stamp duty, sales deed, and title deed
Since documents testify your legitimacy and eligibility, submitting the right ones in a single go can hasten your approval.
Low cost sanction to fund quality and aesthetic renovation
Since a loan against property is secured by your asset, lenders consider it a low risk proposition as they have a right of lien over your asset. In turn, they charge you a lower loan against property interest rate as compared to an unsecured loan. Also, depending on the lender you choose, you can access around 60% to 70% of your property’s value as a loan. For instance, with Bajaj Finserv you can access up to Rs.1.5 crore and Rs.3.5 crore as a salaried and self-employed applicant respectively.
With such a high sanction, you can easily refurbish your home as per your choice without any compromise. So, whether you want to do up a single room with new décor, furniture, and flooring or remodel your entire home, you can fund all your expenses without overstepping your budget.
Flexible terms of the loan to elevate loan servicing experience
While getting your loan approved is one part of the borrowing experience, repayment is more important as it can have cascading effects on your finances and credit profile. Missing or defaulting on EMIs can bring down your credit score. This further restricts your ability to avail affordable credit during emergencies. So, choose a lender who offers flexible terms of payment.
Bajaj Finserv allows you to avail this loan on a Flexi facility that lets you withdraw multiple times as you go and pay interest only on the utilised amount. This reduces your interest payments to a great extent so you can keep your EMIs affordable. It also complements your home renovation activities as you will have frequent needs for funding rather than a lump sum payment. Further, you can pay interest-only EMIs to manage your repayment better and repay the principal at the end of the tenor.
Lucrative tax benefit to save your annual taxes
Finally, a loan against property offers lucrative tax benefits when you use it for renovating your home. Here, you can claim a deduction of up to Rs.2 lakh basis interest repayment every financial year under Section 24(b) of your Income Tax Act. This way, you can not only refurbish your home, but also safeguard your finances by reducing your tax liability.