Home is where the heart is – it is a beautiful proverb which describes the significance of owning a house and living a peaceful life. Many people believe that a home is a place of comfort and freedom for a person. It gives them the liberty to live as they like without any restrictions from outsiders. They feel protected and secured in their homes and maintain as per their liking. Many people have turned homemakers and enjoy devoting their time in cleaning and furnishing their residence.
Sometimes, the costs for all these activities is too high
and unaffordable for families. They rely on other people and banks as well as
financial institutions for monetary assistance. Many people also borrow a home renovation
loan from banks to help them meet their expenses of decorating and
designing their homes. Following are the reasons to choose this loan:
Lower interest rates: While buying a personal loan
for home renovation, the price of interest is comparatively higher since it is
unsecured. On the other hand, obtaining a house renovation loan is as easy as a
home loan, thus making it an attractive option and securing the homeownership.
Tax benefits: These loans fetch borrowers many tax
benefits on the interest. They are eligible to get a deduction of up to INR
30,000 per annum under Section 24, for the interest they pay on these loans.
This deduction is within the overall limit of INR 2 lakh for self-occupied
residences. The interest payments on home improvement and home purchase loans
put together qualify for deductions as well. The deduction amount also falls
under the tax-saving bracket, which lowers the overall borrowing cost.
Minimal documentation: The loans obtained for home
renovation consist of relatively simple documentation as compared to other
modes of financing. Documents proving the identity, income, property title
deed, etc., are submitted along with photographs. It makes the paperwork lesser
and the approval faster.
