Consumer prices in India grew 5 percent year-on year in October 2015, compared to 4.41 percent in September, says an article published in Trading Economics in November 2015. Rising prices have made it difficult for the common man to fulfil his short-term and long-term needs. If you are a homeowner, you must be aware that owning a home comes at a cost, the cost of maintaining it. With time and wear and tear, the value of a house depreciates. You therefore need to undertake regular repairs and renovation in your house to renew its life.
Financing Home Renovation Was Never This Easy
Home renovation loans are considered to be one of the best ways of financing your renovation projects. Although you might want to finance the repair and improvement work from your own savings or through EMIs while purchasing various repair items, the question is, is it profitable to do so?
Financing your remodelling projects with your savings might make a dent in your pocket. Moreover, it might not be wise to exhaust all your savings in one go. Some people also consider taking personal loans for the same purpose.
Home renovation/improvement loans score over personal loans as they tend to be secured and have lower interest rates. Banks and NBFCs provide credit for construction, such as extending a room or a balcony, repair works, such as painting, plumbing, wiring, flooring and all exterior elevation works. However, they do not finance purchase of consumer durables, such as kitchen cabinets.
All you have to do is to prepare an estimate of the renovation work required and submit it to the financing company, along with the required documents. It is fairly easy to borrow money when you have an existing home loan. The bank may even finance the total amount required for renovation in such cases, as long as it does not exceed 80% percent of the property value.
Some lenders may even undertake a physical verification before sanctioning the amount. You are also eligible for tax deductions on interest payments on home renovation loans. This type of credit facility can be availed by both new and old homeowners. Festivals, such as Christmas and Diwali, are the right time to renovate your house and give it a new lease of life. So, why wait to redecorate your dream home?