Home remodelling is a priority for many homeowners. While purchasing a new home has become harder due to high real-estate prices, remodelling homes has become a lot easier. The online virtualization options, various choices in designs and materials, and individual loan offers have taken the stress out of remodelling. Furthermore, if you are looking for a home improvement loan, you can avail attractive interest rates from many banks, including SBI, HDFC, and NBFIs like Muthoot Fincorp. Moreover, these lending institutions provide loans for a wide variety of needs, including waterproofing, remodelling, roofing, tiling, plumbing, among others.
If you are looking to impress visitors, home improvements can cost you an arm and a leg. Even bathroom renovations may start from Rs. 1,00,000 rupees. The costs for remodelling work are quite similar to the way home constructions do – per square foot. Furthermore, branded tiles can cost as much as Rs. 1000-2000 per square feet. But if you plan on selling the home immediately or keep it for generations – the costs can be worth it.
Below is a detailed guide with help to avail of a home renovation loan.
Interest Rates
Home improvement loans interest rates can start from as little as 9%-12%. It is advisable to opt for a home improvement loan as part of your home loan. Some lending institutes provide an option to add home improvement loans as part of an existing home loan. It guarantees easier access to large sums, quick disbursal, and more flexibility in repayment.
Online Loan Calculators
Many leading financial institutions such as SBI, ICICI, among others, offer an online loan calculator. If you have not used it already, consider using it. These are often entirely accurate and provide you with estimations within 10% of actual costs. However, the key here is to know the exact amount of loan, duration, and EMI you wish to choose. Without an accurate financing plan, the loan calculators will not provide much help.
Lenders
Home improvement loans often fall under the ambit of banks and Non-Banking Financial Institution (NBFI). You will not find any help from government loan disbursal schemes and will have to rely on private providers for these loans. So, the question is – which ones are better? Banks or NBFIs?
Usually, banks offer attractive interest rates for home improvement loans. However, NBFIs like Muthoot Fincorp has become a household name in India for some attractive feature of its own. Many NBFIs like Muthoot fin corp offer competitive interest rates, faster processing of loan applications, and quicker disbursal. Be sure to investigate both before you make your final decision.
Eligibility
Eligibility criteria for home improvement are similar to many other loan schemes. Your identity proof, age proof, and income proof will be sufficient to secure you an attractive loan. These basics can ensure you a credit of Rs. 25 lakh for 20 years or more in most cases. Generally, NBFIs require a much lower credit score for approval as compared to conventional financial institutions.
So, if you are concerned about your credit score for some reason, you might want to check with an NBFI first.
