Top 5 Home Renovation Personal Loan

02 Aug 2021 5 min read
Personal Loan: Top 5 Home Renovation Personal Loan - Afinoz

Redecorating a home can be both a tough and exciting experience. Especially when it comes to financial planning. Larger undertakings, such as renovations, remodeling, and full furnishing, require additional funds. All of these things can now be accomplished with a low-interest personal loan for home renovation.  

Making upgrades or necessary repairs to your property can often be a sensible investment, increasing its resale value significantly (not to mention its comfort, style, and looks). Unfortunately, many homeowners are unable to afford large property improvements without the assistance of a home renovation loan. Do you want to make some changes to your home after this second wave of the COVID-19 pandemic situation? If that's the case, consider the following top home renovation loans for 2021 that you can compare and select the best home renovation loans: 

Best Banks Offering Home Renovation for Personal Loan  

Bank 

Interest rate 

Best for 

Bank of Baroda 

Starts at 6.85% p.a. 

Low-Interest Rates 

TATA Capital 

Starts at 10.99% p.a. 

Security/Collateral 

Canara Bank 

Starts at 6.90% p.a. 

Low Processing Fee 

PNB Housing Finance Ltd. 

Starts at 9.10% p.a. 

Higher Eligibility Criteria 

HDFC Bank 

Starts at 7.55% p.a. 

Flexible Repayment Options 

Home Renovation Loan Schemes and Offers  

1) Home Renovation Loan from Bank of Baroda –  

  • Interest rate: The interest rate begins at 6.85 percent per annum. 
  • Term of the loan: up to 30 years 
  • Processing fees: 0.50 percent of the loan amount [minimum of Rs.7,500 (payable upfront); maximum of Rs.20,000] 
  • Maximum loan amount: The maximum amount of money you can borrow is Rs.10 crore. 
  • It can be used to renovate, improve, or repair an existing property. 
  • There is a 36-month moratorium available. 

2) TATA Capital Home Renovation Loan-  

  • Interest rate: The interest rate begins at 10.99 percent per annum. 
  • Term of the loan: up to 6 years 
  • Fees for processing: up to 2% of the loan amount 
  • To apply for a loan, borrowers do not need to offer any security or collateral. 
  • Improved loan qualification 
  • Prepayment Penalty: There is no prepayment penalty if you repay the loan in full after 6 months from the day you took it out. 

3) Canara Bank Home Improvement Loan  

  • Interest rate: The interest rate begins at 6.90% per annum. 
  • Term of the loan: up to 5 years 
  • Processing fees: Up to 0.50% of the loan amount is charged in processing costs (Min. Rs.1,500; Max. Rs.10,000). 
  • Can also be used to furnish the property, such as furnishings, household appliances, and so on. 
  • Documentation is simple and processing is swift. 
  • Prepayment Penalty: On home loans with a flexible rate of interest, there are no prepayment penalties. 
  • In addition to any applicable taxes. 

4) PNB HFL Home Improvement Loan  

  • Interest Rate: The interest rate starts from 9.10% per annum. 
  • Term of the loan: up to 30 years 
  • Processing fees: Up to 0.50% of the loan amount is charged in processing costs (Min. Rs.10,000) 
  • In addition to any applicable taxes 
  • Can be used to completely renovate your existing home. 

5) HDFC Bank Home Improvement Loan 

  • Interest rate: 7.55 percent p.a. to begin with. 
  • Term of the loan: up to 15 years 
  • Fees for processing: Up to 0.50 percent of the loan amount, or Rs.3,000, for salaried individuals (whichever is higher) 
  • Self-employed processing fees: up to Rs.1.50 percent of the loan amount, or Rs.4,500 (whichever is higher) 
  • Loans for house renovations at the same rate as home loans including applicable taxes.  

Eligibility Criteria of Home Renovation Personal Loan  

Following are some generic eligibility criteria of home renovation personal loan:  

Eligibility Criteria 

Requirements for the loan 

Age of the applicant 

  • Minimum Age: 18 years 

  • Maximum Age: 65 years 

Residents 

The applicant must be either: 

  • Resident Indian or 

  • Non-Resident Indian 

Employment type  

The applicant must be either: 

  • Salaried or 

  • Self-employed 

Applicant should be either 

  • A permanent residence 

  • Or a rented residence where the applicant has resided for a minimum of 12 months before applying for the loan. 

Credit score 

A good credit score of at least 700 or more.  

Documents required for home renovation  

  • The completed and signed application for a home renovation loan 
  • Copy of passport, voter ID, PAN Card, or driver's license as proof of identity. 
  • Proof of address (copies of energy, telephone, and water bills, as well as voter identification, property tax receipts, passports, and Aadhaar cards). 
  • PAN card, birth certificate, 10th-grade mark sheet, driver's license, or passport as proof of age. 
  • Recent passport-size pictures, as well as evidence of investment, are required. 
  • Form 16, latest three months' wage slips, in the case of salaried personnel Copy of IT Returns for the last two financial years, certified letter from employer. 
  • In the case of self-employed persons or businessmen, an ITR from the previous two years with income computations attested by a Chartered Accountant, as well as documents such as profit and loss statements and sales receipts verified by a Chartered Accountant. 

Home Renovation Loan EMI Calculator  

Home loan emi calculator

How do apply for a home renovation loan?  

  • Check your eligibility: Enter your loan amount, income, existing liabilities, and property value into the bank's eligibility calculator to find out how much money you can borrow. An estimate of your eligibility amount might assist you in determining the optimal loan tenure and EMI for you. 
  • Fill out an application for a loan: Fill out a simple online application form with your personal and loan-related information to obtain and compare offers based on your needs and qualifications. 
  • Know the terms of your loan: The home renovation loan offer will specify the loan amount, interest rate, and term for which you are eligible. On further conversation with bank personnel, the same can be finalized. The loan offer is conditional on the bank's verification. 
  • Approval and loan disbursement: After the bank has completed its appraisal and documentation procedures, it will offer you a yes or no answer on your home improvement loan application. The bank will send you a sanction letter if the loan is approved. Your bank account will be credited with the sanctioned amount. 

The application process of Personal Loan for Home Renovation  

  • Step 1: Go to Afinoz.com and fill out an application for a loan. 
  • Step 2: Complete the application form, which includes your personal information as well as your loan requirements. 
  • Step 3: You can analyze various loan alternatives and apply for the one that best meets your needs. 
  • Step 4: After you submit this, a loan representative will contact you to verify your eligibility. Your request will be forwarded to the bank of your choice if it is eligible. 
  • Step 5: A bank representative will contact you to verify your information. 
  • Step 6: Your money will be credited to your bank account once it has been validated. Some lenders disburse loans in as little as 72 hours after a quick 5-minute approval process. 

Conclusion  

Finally, banks offer enticing bargains to employees of well-known companies, such as cheaper interest rates, lesser fees, easier EMIs for the loan, greater loan amounts, and so on. You can compare personal loans for home renovation from various lenders to find the best deal. Use an EMI Calculator to get the greatest monthly payments that fits into your schedule. Afinoz.com, the premier online lending marketplace that offers financial products from 100+ Banks and NBFCs, is the place to go to apply for the Best Personal Loan in India, Secured Loans, and Unsecured Loans. 

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