How to finance your house renovation with a Loan?

Your home is more than just a place of residence. You celebrate special milestones and create a lifetime of memories. A home also reflects your personality and preferences. Hence, your family and you might be keen on improving your home in line with the latest trends. These changes could range from painting some rooms to making structural changes.

With a Home Renovation Loan or Home Improvement Loan offered by reputed lending firms, you can carry out the necessary improvements conveniently. It is a type of Home Loan available for undertaking renovation, repair, and furnishing-related work in an existing house property. You can visit the lender’s branch for a Loan application or apply online.

Moreover, the interest rates offered are affordable for every applicant, enabling them to secure the financing needed to renovate their homes according to their preferences and repay the Loan in easy instalments.

Step-by-step guide to Home Renovation Loan application

Many lenders these days offer a streamlined process to help you finance your home renovation projects with a Home Remodel Loan. Here is a step-by-step guide to applying for it:

Check your eligibility

Salaried applicants must be employed in any of the following: Multinational companies/publicly listed companies/government organisations/private limited companies/partnership firms/proprietorship firms. Self-employed applicants can be businesspersons, doctors, CAs, architects, partnership firms, and private limited companies.

Maintain a CIBIL score of 700 and above with a good credit history and ensure all property paperwork is in order.

Gather the required documents

Submit identity proof (PAN Card, Voter ID, employee card, and driving license), income proof (last three months’ salary slips or last two years’ ITR with computation, last two years’ Form 16, CA-audited financials, six months’ bank statements with salary credits, and six months’ primary bank statements), and residence proof (Aadhaar, latest electricity bill, ration card, and property tax/water bill). Renovation estimates from the architect or interior designer will also be required.

Apply online

Visit the lender’s website and click on Apply Now. Provide your basic information, including mobile number, PAN, PIN code, and employment type. Verify your mobile number via OTP. Fill in additional personal and employment details. Upload your bank statements (for salaried individuals) and other necessary documents. Undergo digital verification of your identity and address through CKYC, OKYC, or DigiLocker. Provide your Bank Account details.

Fill in the Additional Details section, including the Home Loan for home renovation purposes and marital status. Select your preferred repayment mode (Debit Card or Internet Banking) and set up eNACH. Review the Loan offer, including the amount, fees, and repayment terms. Digitally sign the Loan agreement and confirm with an OTP.

Application processing and disbursement

A representative will contact you to process the application and verify your documents. Your application will undergo checks based on creditworthiness, document authenticity, and the lender’s policy. If your application passes all checks, it will be approved, and a sanction letter will be issued. After acceptance of the Loan agreement, the Loan amount will be disbursed within a few business days, often directly to your Bank Account.

Conclusion

Loan approval and disbursement times can vary depending on individual circumstances and your application’s completeness.