What documents required for taking home improvement loan?

At some point in your life, you may want to transform your house into a more beautiful, peaceful, and comfortable space. Home improvement includes remodelling or renovation such as painting, internal or external repairs, and modifications, etc. Such expenses can put a burden on your pocket. However, that does not mean you should give up on your plan of improving your house. 

You can apply for one of the home loans in India, such as the home improvement loan, to improve your house. It is a secured loan that requires you to pledge your property as collateral. Depending upon your property’s value, you can secure up to Rs. 30,00,000/- as a loan. Compared to other secured loans, home improvements loans have lower interest rates and flexible loan tenure, allowing you to make timely repayments. 

Here are some of the top features and benefits of home improvements loans: 

  • Since your property is pledged as collateral, you can secure a higher loan amount to cover the cost of renovation without putting any burden on your savings or investment. 
  • Anyone with possession of property can apply for a home improvement loan. 
  • Since the lender is assured of repayments, you can avail of flexible repayment tenure and lower interest rates. 
  • It is a type of home loan in India that offers tax benefits under section 24 of the Income Tax Act. You can avail yourself of up to Rs. 30,000/- as tax deductions for the interest payable. 

Eligibility criteria 

The eligibility criteria to obtain a home improvement loans are a bare minimum. Here are the ones common across all platforms: 

  • To qualify for a home improvement loan, you must be an Indian citizen currently residing in an Indian city. 
  • You must be at least 21 years old at the time of application or 65 years old at the end of the loan tenure. 
  • You must be either a salaried employee of a private or public company,  or you must be a self-employed professional. 
  • You must show a minimum income based on your lender’s policy. 
  • You must have an active bank account. 

Documents required to obtain a home improvement loan 

While submitting your application, you must include the following documents:

If you are a salaried employee of a corporate

  • Duly filled application form. 
  • A passport-sized photogram. 
  • Age proof: Adhaar Card, PAN Card, Passport, or any other certificate from the statutory authority.  
  • Residence proof: Passport, Ration Card, Driving license, Telephone Bill, Election Card, or any other certification from statutory authority. 
  • Education qualification: Latest degree. 
  • Income proof: Latest salary slips for three months, form 16 for last 12 years, Bank statement for last six months. 
  • Processing fees cheque. 
  • Photocopy of title deeds of the property and the approved plan. 

If you are a self-employed professional

  • Duly filled application form. 
  • A passport-sized photogram. 
  • Age proof: Adhaar Card, PAN Card, Passport, or any other certificate from the statutory authority.  
  • Residence proof: Passport, Ration Card, Driving license, Telephone Bill, Election Card, or any other certification from statutory authority. 
  • Education qualification: Latest degree. 
  • Income proof: Last three years ITR (self and business), profit & loss account, and balance sheet duly audited by a chartered accountant. Last six months’ bank account statements 
  • Certificate and Proof of business existence along with the business profile. 
  • Processing fees cheque. 
  • Photocopy of title deeds of the property and the approved plan.

So, take a home improvement loan and remodel your home to make it your dream space.