A Guide to Getting Approved for Home Improvement Loans
Homes reflect your style and also provide you with comfort and peace. So whether you buy a new home or the one you live in, all can do with some improvement.
You may want to make some changes or additions to make your abode more comfortable or stylish, but the lack of funds can hinder your plans. If this is the case, a home improvement loan can help you.
What Is A Home Improvement Loan?
Home improvement loans offer you financial assistance to renovate your house. They are different from home loans which help you buy a house.
A home improvement loan helps change the house you bought or own into a home. You can use the amount for interiors, make structural changes or add comforts to your home.
You can use the home loan for the following:
- Renovate your existing residential property
- Upgrade your premises
- Make repairs to the flat or home where you live
- Paint the house, both external and internal
- Tiling and flooring for the home
- For electrical and plumbing work
- To waterproof your home
- Fixed woodwork and added a false ceiling
Here’s How You Can Get Approved For A Home Improvement Loan
To get loan approval, you must meet the eligibility criteria and submit the required documents; requirements are similar to home loan documents with a few variations.
The get a loan approved, the applicant should not be more than 70 years at the time of loan maturity.
Documents that you need to submit are as follows:
- A filled-in application form with photographs
- Documents for age proof
- Address proof; passport, telephone bill, driving license, election card etc. are accepted
- Educational qualification degree
- Latest salary slips for the last three months for salaried applicants; for self-employed, certificate & proof of business existence along with the business profile
- Form 16 for the last two years( for salaried)
- Last three years’ Income Tax returns (for self-employed) with Profit & Loss Account & Balance Sheets certified by a CA
- Last six months’ bank statements for the salary account
- Last twelve months’ bank statements for self-employed
- Processing fee cheque favouring the lender
- Copies of the Approved Plan and Title Documents of the Property
- The documents you submit must be self-attested
To get instant approval on a loan, you must meet the eligibility criteria and submit the required documents; requirements are similar to home loan documents with a few variations.
Benefits Of A Home Improvement Loan From PNB Housing
Many financial institutions offer a loan for home renovation. PNB Housing, a leading name in the lending sector, offers loans with the following advantages:
- They have a pan India branch network, so you can avail of a loan from anywhere you are.
- They also offer doorstep services for your convenience.
- The loan approval process is fast, and disbursal is quick.
- Post-disbursement services are excellent.
- You can get an enhanced loan in case your cost of renovation exceeds your budgeted estimate.
- A dedicated team of experienced employees to offer customised solutions and enhanced customer satisfaction.
- Flexible repayment option to suit your requirements.
A Few Aspects To Keep In Mind
When you apply for a home improvement loan, keep a few aspects in mind.
- Assess the renovation cost before you start the project; if required, take the help of a professional to assess the expenses accurately. This will help you assess if you need a loan; if yes, how much loan is required. It is a good idea to consult three-four contractors before you reach the final decision. Do keep some buffer for unforeseen costs or escalation of expenses.
- A good credit score comes in handy when applying for any loan. You can get quick loan approvals and lower rates with a good credit score. A low score reduces your chances of loan approval and your choice of lenders. Focus on being credit healthy so that your loan application is not denied.
To Sum It Up
Home improvement loans can give a new lease of life to your home. Keeping the home loan documents ready and being aware of the requirements and the loan application process can help you get approved for the loan per your requirements.