While a renovation can help you update your home, increasing both comfort and durability,
it can be an expensive affair. Whether it is a complete overhaul or structural modifications that you have in mind, it is likely that you will need financial assistance. This means that you need to pick the ideal home renovation loan.
With a home renovation loan, you can undertake major repair work such as redoing the flooring and adding a guest room, as well as tend to smaller details such as purchasing home decor items that suit your taste and style.
In today’s market there are various financial solutions you can bank on for home renovation. A top contender is the personal loan as it is unsecured and easy to obtain. However, it offers limited finance and the interest rates levied can be high. A smarter alternative can be to take a top-up loan over your existing home loan. This way you get ample finance at an economical rate and benefit from stress-free application as well.
Here are 4 reasons to opt for a top-up loan, followed by a guide on how to avail a top-up loan for home renovation.
You get ample finance at an attractive rate
When you avail a top-up loan, you get access to substantial funds. The Top-up Loan from Bajaj Housing Finance Limited gives you funds up to Rs.50 lakh. With ample finance, you do not have to worry about abandoning your home renovation plans midway. You can easily add a garage, build a patio, or change the tiling on your roof without compromising on or delaying renovation. Further, since this loan works as an extension of a home loan, you get a cost-effective rate of interest.
You get approval without submitting extra documents
To address urgent matters such as a leaking roof swift funding is required. When you take a top-up loan from your existing lender, you can avail assistance without delay. Since your lender already possesses the required documents, you need not spend extra time on paperwork and can get access to liquidity quickly.
You can use the funds for any purpose you desire
What’s great about a top-up loan is that it does not bear any spending restrictions. You can use part of it for home renovation, to install a modular kitchen and purchase expensive home décor items, for instance, and part of it to finance a vacation abroad or fund your business. This makes a top-up loan similar to a personal loan, but the benefit is that you get a larger amount at an economical rate of interest.
You can claim tax benefits when undertaking home renovation
If you utilize the top-up loan for home repairs or renovation and have documentation to support the same, you can avail a tax deduction of up to Rs.30,000 on the interest payable under Section 24B of the IT Act. Also, the limit of Rs.30,000 is only applicable to renovations done to a self-occupied property. However, there is no deduction on principal repayment. This makes the loan even more cost effective.
Eligibility criteria for a top-up loan
The first step to availing a top-up loan is to qualify for it. Thankfully, the eligibility criteria for top-up loans are often simple.
For salaried individuals
● You must be a resident citizen of India
● You must be aged between 23 and 62 years
● You must possess a minimum work experience 3 years
For self-employed individuals
● You must be a resident citizen of India
● You must be aged between 25 and 70 years
● You must possess a minimum of 5 years of continuity in your current business
How to avail a top-up loan for home renovation
Upon qualifying for the loan, you can proceed with the application. Here is what you need to do when applying as a new customer:
· Apply via the online application form
· Select the correct type of occupation
· Pick ‘Balance Transfer + Top Up loan’
· Enter your PIN code
· Click on ‘Submit’
When applying, you can use the balance transfer calculator to know the amount of the top-up loan you are eligible for. Also, since you are a new customer, you may have to produce KYC documents, a recent photograph, and financial documents such as bank statements.
Now that you know how to get a home renovation loan that will help you materialise your plans, apply for finance online and make your dreams a reality!
Also Read: - Know the essential features of Home Renovation Loan