Things You Must Know Before Taking A Home Renovation Loan

Considering a home renovation? Before you embark on that journey, here are key insights you must grasp about Home Renovation Loans. Renovations, though exciting, can be financially demanding. Accessing affordable loans for such endeavours is a common challenge. Top lending institutions like Hero FinCorp address this need by offering loans up to Rs 3 Lakh for instant renovations.

The starting interest rate of 12.5% ensures cost-effectiveness in your financial plan. With a minimum salary requirement of Rs 15,000, Hero FinCorp simplifies the application process, making the loan available within 48 hours. Their lenient CIBIL and documentation requirements cater to a broader audience, making them the preferred partner for your financing needs.

Understanding Home Renovation Loans

When considering financing options for your home renovation, it's crucial to understand the Personal Loan. Home Renovation Loans are a form of Personal Loan, which are usually unsecured. This means you do not need to provide any collateral to obtain this loan. The lender approves the loan based on your creditworthiness.

Documentation Required

Documentation is a crucial aspect of the Home Renovation Loan application process. You must have the required documents to ensure the best experience on an instant loan app. Here's a brief about loan documentation.

Salaried

-Mandatory Documents: Duly filled loan application form, Passport size coloured photograph

-Identity Proof: Driving Licence/ Passport PAN Card (mandatory)/ Aadhaar card

-Residence Proof: Driving Licence/ Passport/ Aadhaar Card/ Ration Card/ Utility Bill

Residence Ownership Proof: Electricity Bills/ Maintenance Bills/ Property Documents

-Income Proof: Last three months salary slips, Last six months bank account statement (salary account), Form 16

-Job Continuity Proof: Appointment letter from the current employer, Experience certificate from the previous employer

Self-employed

-Mandatory Documents: Duly filled loan application form, Passport size coloured photograph

-Identity Proof: Driving Licence/ Passport PAN Card (mandatory)/ Aadhaar card

-Residence Proof: Driving Licence/ Passport/ Aadhaar Card/ Ration Card/ Utility Bill

-Office Address Proof: Maintenance Bill/ Utility Bill/ Property Documents/ Rent Agreement

-Business Existence Proof: Copy of Tax Registration/ Shop Establishment Proof/ Company’s Registration Certificate

-Income Proof: Last six months bank statement, ITR for the last two consecutive years

Other Key Considerations

Let's look at other considerations for a Personal Loan for Home Renovation.

Interest rates

Unlike home loans, Home Renovation Loans are unsecured, so they have a little higher interest rates. The interest rate you secure for your Home Renovation Loan is contingent upon a myriad of factors, each playing a crucial role in determining the financial terms. Personal Loans come with attractive interest rates, making them affordable for all types of borrowers. For example, Hero FinCorp offers Personal Loans for Home Renovation to salaried and self-employed individuals, starting at 12.5%.

Repayment tenure

The duration of repayment is a significant factor that distinguishes various loans. The repayment terms differ based on the lender and the specific type of loan. For instance, Personal Loans, a common financial avenue for home improvements, often come with a repayment period extending up to 3 years. Those looking to save on loan interest can choose a shorter tenure, while those aiming for relaxed EMIs can select a longer loan term.

Credit score

A crucial determinant in securing a Home Renovation Loan is your credit score. A lower credit score can lead to the rejection of your loan application, underscoring the significance of enhancing your creditworthiness. Repaying old loans is a pivotal step in this journey, ensuring a smoother approval process.

To learn your financial standing, you must check your credit score regularly. Websites like CIBIL offer a free annual credit score check, providing insights into your credit health. For most financial institutions, a score exceeding 750 is deemed excellent and significantly boosts your loan approval prospects.

Loan EMI Calculator

Before you apply for a Home Renovation Loan, use a Personal Loan EMI Calculator available on the websites of top lending institutions like Hero FinCorp. It can help you calculate your loan EMI in advance by entering the loan amount, repayment tenure and interest rate. You can adjust the tenure to find a suitable EMI amount as per your monthly budget. It's a free-to-use tool that can help you make an informed decision.

Conclusion

When you are armed with the right information, the journey toward renovating your home becomes a smooth and manageable process. By researching, determining the optimal loan amount, selecting the right lender, and aligning your monthly budget, you set the foundation for a successful and stress-free home improvement venture.

Hero FinCorp offers a Personal Loan for Home Renovation of up to Rs 3 Lakh at interest rates starting at 12.5% and repayment tenures of up to 36 months. You can apply online on their website or through the best instant loan app for the best experience.