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Home Improvement Loans

Maintaining homes is a costly affair. Banks are coming out with new products to suit the needs of the customers. Home improvement loans have been introduced by quite a few banks.

Purpose of Home Improvement Loans Include:

  • - Internal and external repairing
  • - Waterproofing and roofing
  • - Complete interior renovation
  • - Tiling and flooring etc.

Interest on Home Improvement Loans:

  • - Home improvement loans interest rates depend on a number of factors :
  • - The tenure for which the loan is taken
  • - Loan amount
  • - Type of housing improvement loans taken
  • - Type of customer and his repayment capacity
  • - Loan policy of different companies. Interest rates will be different for private sector and public sector players.Companies lower the interest rates during festive seasons.
  • - Rates of interest charged will be as per Bank's policy on the date of disbursement of loan.

Maximum Amount of Home Improvement Loans:

An old customer is sometimes given 100% cost of improvement. Generally all the new customers are sanctioned 85% of the cost of improvement. The maximum loan amount can vary from bank to bank, it also depends on the amount of loan taken and the repayment capacity of the customer. The amount of loan is however subject to the market value of property. The maximum term of home improvement loan varies from bank to bank, depending on the age of the applicant at the time of loan application. The loan payment is made by equated monthly installments (EMI).

Number Of Loans Applicants:

A loan can be taken either on an individual or joint basis. Some companies necessitate that proposed owners be co-applicants, however, co-applicants need not be co-owners. Minimum age of a person applying for loan should not be less than 21.

Home Improvement Loans Application Process:

An individual/company/professional can apply for home improvement loans in different home loans corporations/ banks by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loans.

Documents Required for Approval of Home Improvement Loans:

Businessman/ Self employed professional:

  • - Application form with photograph
  • - Educational qualification
  • - Identity and residence proof
  • - Proof of business existence with business profile and last three years income tax return
  • - Last 3 years income statement and balance sheet.
  • - Last 3 month's personal and business bank statements.
  • - Processing fee check

Salaried customers:

  • - Application form with photograph
  • - Identity and Residence proof
  • - Latest salary slip
  • - Form16
  • - Last 6 months bank's statement
  • - Processing fee cheque.

List of Some of Banks Providing Farm Equipment Loans:

HDFC Bank- Internal & External Reparing
ICICI Bank- Attractive Repairing Interest Rate
Bank of India - Repair of House
Standard Chartered- Home Repairing Assist
State Bank of India - Repair of Existing House
Union Bank of India- Union Home Plus
UCO Bank- UCO Shelter
Bank of Baroda - Financing An Old House
Citibank- Home Renovation Scheme
Development Credit Bank - DCB Home Vantage

* Terms and conditions may vary from bank to bank.