Home furnishing and renovation is an art that requires lots
of innovative ideas, creativity, and monetary support. Without money, things
cannot be purchased, let alone basic requirements. Many people love decorating
and painting their houses to make it look lively. Modern techniques and methods
have been introduced to home décor programs, and people love to explore and use
them to make their interiors look stylish.
Home renovation requires lots of money and effort, along
with innovation and design. Some of the expenses would be hard to bear, hence
leaving the person to compromise on ideas. Thus, banks introduced a scheme of
providing a home
renovation loan to all those individuals fond of decorating their houses,
without spending too much money. These loans have helped consumers customise
their homes at their own will without worrying about hurting their desires.
Features and benefits
Loans that are designed for consumers to refurbish their
homes offer a variety of features and benefits that make it easier for them to
manage their expenses.
Some of the features and benefits are as follows:
Many banks offer a choice of interest rates, like fixed and
floating, for the loan applicant to choose the method of calculation of the
rate of interest.
There can be combos of fixed and floating interest rates.
The first few years of the loan tenure will have a fixed interest rate, and the
remaining period will have a floating interest rate.
Banks have websites and online portals for users to access
and apply for loans. It saves time.
The loan amount can be paid in instalments or all at once.
Some banks may also offer credit cards on applying for a
loan.
A home
improvement loan requires minimum documentation depending on the bank.
Documents to be submitted
Every bank requires documents to process loans. This
procedure is incomplete if the loan applicant does not provide them on time or
misses out on some of them.
The list of standard documents for house renovation
loan are:
Loan application form with passport size photographs
Form 16 and latest salary slips
Bank statements of the previous six months
IT return documents
Original property papers and deeds
The estimated cost of renovation mentioned in the quotation
by the architect
Address proof and KYC documents like Aadhaar Card, Driving
License, Passport, etc.
These are the documents that are commonly asked
for proof by the bank for a home renovation loan. There may be more documents
apart from the ones mentioned above. Banks have the liberty to ask for more
evidence as the verification process varies between banks.