They say your house reflects your personality and is not just a roof over your head. Also, it is that one place that brings the utmost comfort. But all you want to do is to go home. Renovating your house can bring in great ambiance and add aesthetics to your house. However, we all know that house renovations sometimes burn a hole in your pocket. So, this is where home renovation loans come to your rescue.
You can avail of a personal loan home renovation to modify, renovate or refurbish your home. While home loans are available to buy a house property, home renovation loans are available to renovate an already existing house property.
Some of the reasons you should opt for a house renovation loan are:
- Lower rate of interest:
If you borrow a personal loan, you must pay a higher interest rate as this is an unsecured loan. However, if you opt for a home renovation loan, you benefit from paying a lower interest rate. When you pay a lower interest rate for a more extended period, paying off the loan becomes more accessible.
- Lower EMIs:
It is logical to say that if you have borrowed a loan at a lower interest rate for a more extended period, your EMIs will be of a lower amount. If you are a salaried person with a fixed income, lower EMIs are a boon to you. This is advantageous for you as this helps you to plan and manage your finances better.
- Less paperwork:
Home renovation loans require less paperwork, especially if you have already previously taken a housing loan in the same bank or financial institution. So, this gives you one less thing to worry about since the paperwork is already sorted. However, it is essential to note that if you are taking this loan for the first time, you have to go through the due process of applying for a loan and all the disbursal formalities.
- Tax benefits:
By availing of a home renovation loan, you can avail of the tax benefit of Rs 30,000 under Section 24 of the Income Tax Act (this is included within the overall deduction of Rs 2 lakh provided for payment of interest on home loans taken for self-occupied property.)
- Instant processing:
Usually, the verification process takes longer when you apply for an instant loan online. In this case, however, the loan is processed almost instantly since documentation is minimal. This saves your time and makes the process hassle-free.
- Flexibility in usage:
One of the best things about a house renovation loan is that there is no restriction on its usage. You can use it for anything, be it house repair, renovation, adding one or two rooms, painting, structural changes. In addition, there is no restriction on how you want to use the house renovation loan to remodel your house.
- More lender options:
When you opt for a personal loan, the number of lenders is comparatively less, especially if you have a lower salary or your credit score is not that great. Personal loans are unsecured loans and, therefore, riskier for the lenders. But the same is not the case with home renovation loans. You’ll see that you have a higher number of options for lenders as it is a secured loan and less risky for lenders. Therefore, you can get a better loan amount and a lower rate of interest.
To conclude, it is safe to say that remodeling your home or renovating your house adds some flair and uplifts your spirits. Home is the place where one spends the most time. Therefore, it is necessary for you to feel comfortable in that space and love it. By availing tax benefits, you can even reduce the overall cost of borrowing.
You no longer have to put your home renovation plans on hold due to lack of funds; go ahead and apply for that house renovation loan and transform your house into a beautiful living space.