Planning To Renovate Your House? Think Of A Home Improvement Loan
Your home is more than just a house; it is your own personal space and one that reflects your own image. Owning a home is a cherished aspiration for many, and a matter of great pride and achievement. Everyone has their own vision of what their ideal home should look like, and over time, they need to renovate and revamp for keeping it so.
Renovating a home brings in a lot of challenges: the primary one being arranging the funds to get it done. And of course, when it comes to home improvement, budgets are always overshot as the work unravels. A lot of people find this challenging, and understandably so. If you’re thinking of doing up your place but don’t have the money all in one go, you could always try and apply for a home improvement loan or home renovation loan to renovate and furnish your house. Before you go on to apply for one, understanding what these loans are and how they can work for your home, is a good idea.
What are Home Improvement Loans
Home Improvement or Renovation loans are basically Personal Loans meant for home renovation. They are unsecured loans that can be used to finance your home improvement. Unlike home equity loans or HELOCs, these loans do not require collateral, such as home equity, to secure the loan. Instead, the loan is based on your creditworthiness and income.
Here are some key points to understand about personal loans for home renovation:
Flexibility: Personal loans provide flexibility in terms of how you can use the funds. You can use the loan to cover various home renovation expenses, such as remodelling a kitchen, adding an extension, upgrading bathrooms, or making cosmetic improvements.
Loan Amount and Terms: The loan amount you can qualify for and the repayment terms will depend on factors such as your requirements, credit score, income, and the lender’s policies. Personal Loans for home renovation at ICICI Bank typically range from Rs 5,000 to Rs 50 Lakh, with repayment periods typically ranging from 12 months to 6 years.
Interest Rates: Need personal loan have fixed interest rates, which means your monthly payments remain the same throughout the loan term. The interest rate you qualify for will depend on your creditworthiness. Generally, borrowers with higher credit scores are more likely to secure lower interest rates.
Application Process: Applying for a personal loan for home renovation usually involves submitting an application with the lender. This can be done online or through the iMobile App with ICICI Bank. Once you apply, representatives will evaluate your credit history, income, and weigh up other factors to determine your eligibility and loan terms. The application process may include providing documentation such as proof of income, identification, and details about your renovation plans.
Repayment: Personal loans for home renovation are repaid through fixed monthly instalments over the agreed-upon term. It’s important to factor in the loan repayment amount into your budget and ensure that you can comfortably meet the monthly payments. Now you can see how much you’ll stand to pay in EMIs to repay your loan with ICICI Bank’s Personal Loan Eligibility Calculator and plan your finances beforehand.
Why Consider Home Renovation?
There are several compelling reasons to go in for home renovation. Your home may be showing signs of wear and tear, your family might be expanding, or your personal preferences could be changing. Each homeowner has their own unique motivations, but some common reasons include addressing maintenance issues such as plumbing or electrical problems, damp walls, or termite infestations.
Additionally, renovating your home can increase its value, making it more attractive to potential buyers if you plan to sell in the future. Here are some of the most common reasons to renovate a home:
Enhancing Home Comfort
Your comfort in your own home is essential and as issues begin to arise, it’s natural for you to feel a little less comfortable. Renovations can help improve both the comfort and aesthetics of your home, ensuring a more enjoyable living space.
Addressing Safety Concerns
When faced with the usual broken tiles, damp walls, termite infestations, or electrical problems, renovation becomes a necessity to ensure the safety and well-being of your household.
Increasing Resale Value:
Investing in upgrades and renovations can significantly boost the resale value of your home. By improving its aesthetics and resolving any underlying issues, you can potentially command a higher price when selling your property.
Eliminating Malfunctions:
If you consistently experience issues with various appliances or systems malfunctioning, a comprehensive home renovation can effectively eliminate these recurring problems. By tackling all the necessary repairs and upgrades at once, you can restore functionality to your home.
Remember, it’s important to carefully evaluate your renovation needs, set a budget, and plan your project accordingly. Consulting with professionals can provide valuable guidance to ensure a successful renovation experience.
Documentation Required for a Home Improvement Loan
To get a home improvement loan sanctioned, minimal documentation is required for getting a sanction from ICICI Bank, especially for existing customers. Though document requirements vary from one lender to the next, the most commonly required ones are:
- Application form- duly filled
- Home title deed -Original
- Residence and Identity proof
- Employment and income proof
- Bank statement for the last 6 months
- Passport size photo
- Processing fees cheque
- In some cases, an estimate by an architect or an engineer for the approximate cost of renovation
Summing Up
Getting a home improvement loan can really step up if you are looking to renovate your house quickly: in the way you like. Know how much you can borrow from ICICI Bank by clicking here and apply for your home improvement loan today!
