We all want modern, attractive homes that look charming and fully functional. Every area of the house should be properly managed and maintained.
But we cannot avoid possible damages. After a few years of living in the same home, there could be internal damages, plumbing requirements, paint, or whitewashing needs. Besides these, there could be a strong urge to beautify your abode, create more space, change your living room style, revise the tiling or ceiling, or simply add a porch or washroom to the existing space.
But what if your savings don’t allow you to spend a huge amount on such lavish home renovation expenses? The best alternative to such a situation is to go for a home repair loan or a home improvement loan. These loans can help you finance the cost of your renovations, and you can repay them in Equated Monthly Installments (EMIs). EMI meaning are fixed monthly payments that you make to your lender over a set period of time.
Read on to learn what this loan means and how you can get one in a hassle-free manner.
What Is a Home Repair Loan?
Just like you can take a home loan to purchase a home, you can take a home repair loan to renovate, refurbish, or improve your home. You can use it to resolve internal/external home damages or modernise or beautify your living space. There is no restriction on the use of home repair loans. You can either get a secured or an unsecured home loan.
A secured home loan allows you to keep your property as collateral and offers a loan amount that could be 50-70% of the market value of the property. It also comes with a much lower interest rate and is an ideal option.
Unsecured home repair loans don’t require you to keep any collateral and lend you a loan amount based on your age, credit history, employment, sources and amount of income, and other conditions. These loans generally come with a higher rate of interest as compared to secured loans.
How to Get a Home Repair Loan
The home loan requirements and home repair loan procedure are more or less similar. Follow the directions given below and apply for a home repair loan from the best financial institution:
Step 1 – Check Your Eligibility
It is important to check if you meet the eligibility criteria before you apply for a home repair loan. Although every financial institution has its criteria to fulfil, some of the fundamental criteria to be fulfilled are as follows:
The Transfer of Property Act is a law that governs the transfer of property in India. It is important to comply with the Transfer of Property Act when renovating your property to ensure that the renovation work is legal and that you have a valid title to the property after the renovation is complete.
- You should be between the age group of 18 – 65 and a resident of India
- You can be salaried or self-employed, with necessary proof of employment and income
- You should have a high credit score, preferably 700 plus, to get the benefit of an affordable rate of interest on the loan.
Step 2 – Compare and Select the Best Home Repair Loan Provider
You must use a Home Repair Loan EMI calculator and make a wise comparison among various financial institutions based on the interest rate offered by them. You can use various combinations to modify your loan value, loan tenure, and interest rate to get the desired EMI that suits your budget.
You must remember that interest is not the only factor you must compare before selecting the right loan provider. You must also consider consumer reviews and ratings, credibility, reputation, and consumer support team before you get into a loan relationship with them.
Also, check for additional or hidden fees and charges before you get into a deal.
Step 3 – Keep the Required Documents Handy
Before you apply for a home repair loan, keep the following documents handy:
- KYC documents
- Proof of Income
- The original title deed of your home
- IT-related documents
- Property/Home Improvement related documents
- Financial Documents
- A cheque for the processing fee
- Estimate of your home improvement work authorized by a professional
Step 4 – Follow the Required Process
Every financial institution has its own online and offline home repair loan application, verification, and disbursal process. Make sure you go through the terms and conditions and learn about the exact procedure before you fill out the loan application.
Good institutions will align you with a representative and provide doorstep service for such loans. Make the most of such benefits, and just follow the prescribed procedure.
If you are aware of the procedure, it is quite easy to apply for a home repair loan. This guide will help you with an overview of what is required to get an instant home repair loan. Now you can refurbish and decorate your home, transform it into a stunning dwelling, and increase its value.
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