Property

Looking to Upgrade your Home? Take a Home Renovation Loan

Remember the days when you bought your house using a home loan? In those days, you were not earning a lot of money but still managed to repay your loan dues on time.

But now with god’s grace, you are doing very well financially and your income too has increased. Compared to earlier days, the home loan EMI today is not much of a burden given you and your spouse’s combined monthly salary.

Having lived in the house for several years, you now want to make big renovations to upgrade it and lead a better lifestyle.

But you are facing a small dilemma. Even though you have a major part of the necessary funds for the renovation, you don’t want to use up all the money at one go. After all, you also need to save for other important financial goals like retirement, children’s education, etc. Isn’t it?

So what are your options?

One good option is to take a home renovation loan. These loans come at a very affordable interest rates and can be used to fund many things within the scope of renovation like external repairs, new tiling, new flooring, painting, landscaping, roofing, etc.

Home renovation or improvement loans are given specifically to renovate the property. Though interest rates are very affordable, the final rate offered depends on factors like the financial profile of the person applying for the loan, the loan amount, lender’s policies, etc. Generally, most lenders are ready to give a loan equal to about 80% of the actual amount required towards the renovation of the house. Like home loans, you can also avail tax benefits on home improvement loans. Some degree of tax exemption is available under the Section 24(b) of the Income Tax Act.

So if you have been waiting to finally get your house renovated but were worried about how to fund it, then you should seriously consider taking a home renovation loan.

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