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Here are the 5 Most Important Advantages of a Home Renovation Loan

Home Renovation Loan

A home is not just a place where you eat and sleep. It is the only place on this planet that brings respite to your tired soul. Thus, it is very important to design your home in a way that soothes your soul. Be it painting the walls or doing the interiors, buying new furniture or getting new home appliance, investing on your home is a necessary investment. But this investment can cost you in lakhs which is often difficult to fit into a monthly budget. In such case, a personal loan canbe your best bet.

A home is not just a place where you eat and sleep. It is the only place on this planet that brings respite to your tired soul. Thus, it is very important to design your home in a way that soothes your soul. Be it painting the walls or doing the interiors, buying new furniture or getting new home appliance, investing on your home is a necessary investment. But this investment can cost you in lakhs which is often difficult to fit into a monthly budget. In such case, a personal loan canbe your best bet.

You don’t have to wait for months to get an instant money loan, or submit tons of documents to get approval or put your assets as collateral. A personal loan is an unsecured loan that is given on the basis of your credit score, monthly income and repayment capability. You can apply for a personal loan through a mobile loan app in a few clicks.

Read on to discover 5 most important advantages of availing a personal loan for home renovation.

5 Most Important Advantages of a Home Renovation Loan

1.      No Collateral Needed

In the majority of loans, you have to pledge your assets as collateral against your loan for security. But a personal loan for the home renovation is an unsecured loan; which means you don’t have to submit your assets as security. This has two major benefits. Firstly, you can avail this loan even if you do not own anything valuable to put up as collateral. Secondly, unlike home loan or car loan your assets would be safe even in case of a loan default.

2.      Minimum Documentation

Compared to other forms of financing options, loans for home renovations require very less paperwork. All you need to submit is some basic papers, such as a photo ID, address proof and proof of income. The paperwork is easier to complete if you are an existing client of the finance firm. Some of the necessary documentation for a home renovation loan are:

  • Filled out application form
  • ID Proof
  • Passport Size Photograph
  • Age Proof
  • Some Additional Documents (if asked by your lenders)

3.      Instant processing of Loan

Loans for home renovation are processed faster because of the minimal paperwork and simplified eligibility involved. Instant approval of a loan allows you to start your home renovation process without any delay. This is especially helpful in case of repair works where waiting another day is not an option. With instant money loan through loan apps you can get the loan amount credited into your account within 24 to 48 hours.

4.      Flexible Repayment Options

Depending upon your loan amount and how much you are willing to pay every month to your lender against your loan as EMI, you can choose the loan repayment tenure from 12 to 60 months at your convenience. However, do remember, the lesser the loan tenure the lower is your total loan interest payout. In simple words, you can pay off your loan quicker if you opt for a higher EMI and shorter tenure. By doing this, you’ll make sure that you pay a lot less for interest. On the other hand, you might choose fewer EMIs if you’d like to have more financial freedom. Your loan’s term will be extended as a result, but you’ll be able to better budget your monthly spending.

5.      Tax Benefits

Under Section 24, you receive a tax break on the interest portion of a loan for home renovations. You will be specifically eligible to deduct up to ₹30,000 per year for the interest you pay on these loans. You will be qualified for a tax deduction for the interest paid on the loan. You should be aware that the deduction for self-occupied dwellings is limited to a maximum of ₹2 Lakhs annually. The tax deduction for properties that are rented out has no upper limit.

However, you are not permitted to claim any benefits while buying electrical or furniture equipment. Additionally, you will need to provide documentation proving that you are utilising the loan money for home improvements to receive the benefits.

Conclusion

Now that you are aware of some of the most appealing advantages of a home repair loan, don’t hesitate to apply for a personal loan to renovate your house. Nowadays, there are numerous instant money loan providers that will provide you with hassle-free home renovation loans at a low rate of interest. Like with any loan, it is wise to carefully review all of the terms before deciding on a course of action. Also, take a close look at other key elements such as the lender’s processing costs, prepayment fees, and foreclosure fees.

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