Purpose of Home Improvement Loans Include:
Internal and external repairing
Waterproofing and roofing
Complete interior renovation
Tiling and flooring etc.
Interest on Home Improvement Loans:
Home improvement loans interest rates depend on a number of factors :
The tenure for which the loan is taken
Loan amount
Type of housing improvement loans taken
Type of customer and his repayment capacity
Loan policy of different companies. Interest rates will be different for private sector and public sector players. Companies lower the interest rates during festive seasons.
Rates of interest charged will be as per Bank's policy on the date of disbursement of loan.
Maximum Amount of Home Improvement Loans:
An old customer is sometimes given 100% cost of improvement. Generally all the new customers are sanctioned 85% of the cost of improvement. The maximum loan amount can vary from bank to bank, it also depends on the amount of loan taken and the repayment capacity of the customer.
The amount of loan is however subject to the market value of property. The maximum term of home improvement loan varies from bank to bank, depending on the age of the applicant at the time of loan application. The loan payment is made by equated monthly installments (EMI).
Number Of Loans Applicants:
A loan can be taken either on an individual or joint basis. Some companies necessitate that proposed owners be co-applicants, however, co-applicants need not be co-owners. Minimum age of a person applying for loan should not be less than 21.
Home Improvement Loans Application Process:
An individual/company/professional can apply for home improvement loans in different home loans corporations/ banks by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loans.
Documents Required for Approval of Home Improvement Loans:
Businessman/ Self employed professional:
Application form with photograph
Educational qualification
Identity and residence proof
Proof of business existence with business profile and last three years income tax return
Last 3 years income statement and balance sheet.
Last 3 month's personal and business bank statements.
Processing fee check
Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.
