Know the essential features of Home Renovation Loan


A home renovation loan, also known as a home improvement loan, is one of the major financial products that help individuals to deal with financial liabilities arising from old residential structures, extension of an existing building, damages caused by degraded plumbing, as well as corrosion of walls and ceiling due to age, or any other structural issue of the property.

Individuals who want to fund their home renovation loan should also be aware of the important features of such loans to reap the maximum benefits.


What are the features of home improvement loans? 

The significant features of home renovation or improvement loans are as follows – 
  • End-use – Individuals can use this loan to meet the financial burdens emerging from renovation, repairs, and extension of their residence. Individuals who have availed home loans can also seek top up loans from their lenders to avail finances necessary for home décor items, construction of a garage, repainting of interior and exterior, etc.
  • Rates if interest – The interest rates applicable on such loans are considerably more affordable than interest rates on personal loans. It is primarily because these loans are secured by the property itself, unlike unsecured personal loans.
  • Tax benefits – Individuals can also avail tax benefits on the interest component of a home renovation loan till up to Rs.30,000 under Section 24(b) of the Income Tax Act, 1961. However, these benefits are only available if the funds availed via the loan are solely utilised for renovation purposes respective to that property.
Additionally, individuals can benefit from easy processing and minimum documentation requirements applicable on home improvement loans.

Also Read:- Things you should know about Top-Up Loans on Home Loans in India

Comments

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  2. Property Professors Online17 August 2022 at 02:44

    This is really an awesome blog I ever seen. All the articles are very well written and very helpful. Thanks for sharing about rehab loan requirements.

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