Personal Loan For Home Renovation
A personal loan being a multiple-purpose loan can also be availed for home renovation. There are many leading banks and NBFCs available known for offering personal loans for home renovation purposes. An individual needs to have a minimum monthly income of Rs.35,000 and also his cibil score should be above 750. Make sure you fit into the required eligibility criteria while keeping your documents handy. Moreover, features like no collateral, less interest, minimal documentation, instant approval, and the fastest disbursal, make the personal loan the most preferred choice for home renovation.
Home Renovation Loan: Eligibility Criteria
| Eligibility Criteria | Salaried | Self-employed |
| Minimum Age | 21 | 24 |
| Maximum Age | 58 | 65 |
| Minimum Income | Rs.35,000 monthly | Rs.2 lakh(annual) |
| Credit/Cibil Score | Above 700(out of 900) | Above 700(out of 900) |
| Minimum Job/Business Stability | 1-2 Years | 2-3 Years |
| Minimum Work/Business Experience | 1-2 Years | 3 Years |
| Minimum Profit After Tax | NA | Rs.1-2 lakh(annual) |
Documents Required for Home renovation Loan
Documents required for home renovation loan for salaried person
- Duly signed application form for personal loan balance transfer along with passport size photograph
- Identity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
- Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
- PAN Card copy (Mandatory)
- Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)
- Last 6-month bank statement
- Salary slip for the last 3 months
- Statement of personal loan from a current lender (a loan that needs to be transferred)
Documents required for home renovation loan for Self Employed
- Duly signed application form to do loan balance transfer along with passport size photograph
- Identity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
- Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
- Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)
- TAN Card
- Last 3 years Balance sheet along with profit and loss statement pertaining to business
- Last 6-month bank statement of individual and business entity
- Statement of personal loan from a current lender (details of the loan that need to be transferred)
How to Apply for a Personal Loan for Home Improvement Online
Apply online for an instant personal loan as it is one of the easiest and fastest ways available. With many banks, NBFCs and digital marketplaces like Quikkloan availing an instant loan is a hassle-free process. The process starts by doing a complete credit assessment of a borrower’s credit profile and then helping him meet the right lender.
Features and Benefits of Personal Loan
Quick Approval & Disbursal: The feature of the fastest approval and disbursal is what makes personal loan so popular these days. Once you meet the eligibility criteria, getting the loan amount is a hassle-free process.
Minimal KYC Documentation: With minimum KYC documents, you can get this loan. Make sure your documents such as Identity Proof, Income Proof, Address Proof, etc are ready.
Maximum Loan Amount: In case of a personal loan, the loan amount goes up to Rs.20 lakh which means your instant financial needs can easily be covered.
Flexible Repayment Tenure: A borrower can repay the loan by choosing a flexible tenure of up to 5 years. This repayment tenure allows a borrower to enjoy easy EMIs and less loan burden.
Minimal Processing Fee & Other Charges: Another benefit that comes along with a personal loan is the minimum process and related charges. There are higher chances that a lender can reduce the processing fee, if you maintain good terms and are an esteemed customer.
No Collateral/Security: A personal loan can be availed without security or collateral. Thus, a borrower can get a loan without any hassle as no security is required.
Why to Take Personal Loan for Home Renovation
You Will Not Use Home as Collateral: To borrow a loan against property or a home improvement loan you are required to give your property as collateral. But, in case of personal loan you are not supposed to give anything as collateral to avail the loan.
Lesser Amount as Interest: Though the interest rates are higher in a personal loan, still you pay a lesser amount in the personal loan as interest. Here, you will get the amount maximum for six years, but if you will borrow a home loan or a top-up loan for home improvement then you will get the tenure for 10 years or 20 years depending upon the tenure of your home loan.
Let’s take an example to understand this better:
A borrower has taken a home improvement loan for 15 years @ 9.75% of Rs.10 lakhs. His total outgo as interest in these 15 years would be Rs. 9,06,853. But, if he will avail a personal loan for 6 years @ 12.95% for the same amount, his total interest outgo would be Rs. 4,43,436.
So, you can easily figure out that taking a personal loan is better than taking a home improvement loan as it will help you in saving more amount.
You can Borrow as Much as You Want: In personal loan you can borrow as much as you want. Here, the limit is in accordance with your monthly salary, but does not depend upon the property’s value. You can borrow a lower amount or a higher amount as a loan in personal loan. There is no limit for a specific category, despite your creditworthiness. So, you can borrow a personal loan as per your requirements. If you want to borrow a smaller amount you can borrow that as well.
Get Debt Free Sooner: Personal loan gives you an opportunity to get debt-free soon. Yes, even if you borrow a personal loan for a maximum duration which is up to 5 years, you will get debt free soon as compared to other loans.
Why Cibil is Important in Availing Personal Loan for Home Renovation
If we talk about the cibil score, it ranges between 300-900, and a score above 750 out of 900 is considered to be ideal for instant personal loan approval. This three-digit summary indicates an individual’s creditworthiness and gives a clear picture of his financial health. Before providing this unsecured loan, the lenders need to trust a borrower as far as loan repayment is concerned. And, this can only be done by checking a borrower’s credit history or past repayment schedule.
This is the reason, lenders always keep an eye on cibil and give loan approval only when the credit history/profile of a borrower is in a good state. Thus, it is always advisable to maintain a healthy score as it helps in getting a personal faster.
Frequently Asked Questions
Q.Who is Eligible to apply personal loan for a home renovation?
A.Both salaried professionals, as well as self-employed professionals/businessmen, are eligible to apply a personal loan for home renovation.
Q.What is the Age Limit?
A.For salaried: 21-58 years
Here, the minimum age of an applicant should be 21 years at the time of availing a loan and the maximum is 58 years at the time of loan maturity.
Self-employed: 24-65 years
The minimum age of an applicant should be 24 years at the time of availing a loan and the maximum age should be 65 years at the time of loan maturity.
Q.What is the Minimum Income Required for personal loan home renovation?
A.An applicant needs to earn a minimum of Rs.20,000(monthly) to become eligible for an instant personal loan. However, the income criteria varies from lender to lender.
Q.What is the Maximum Loan Amount I Can Get?
A.The maximum loan amount is Rs.20,00,000, which can be given to a borrower according to his eligibility. However, the minimum loan amount is Rs.5,000.
Home Renovation Loan ICICI
ICICI personal loan can easily be availed for home renovation as it comes with a lot of features and benefits to choose from. The lender offers this loan with a maximum loan amount of up to Rs.20 lakh with a tenure of up to 5 years at an interest rate starting at 11.25% per annum.
Home Renovation Loan SBI
A borrower can also avail SBI personal loan to meet home renovation needs. With a loan amount of up to Rs.20 lakh, taken for a tenure of 5 years at an interest rate of 10.50%-14.90% per annum, the lender is here to cater to the needs of one and all.
Home Renovation Loan Axis Bank
Axis Bank personal loan is available at an attractive interest rate of 12%-24% per annum with a loan amount of up to Rs.15 lakh which can be repaid in 5 years.
Home Renovation Loan Bank of India
With Bank of India personal loan for home renovation, enjoy attractive interest rates of 11.50% per annum thus a reduced loan burden. With a loan amount of up to Rs.10 lakh which can be taken for a tenure of up to 5 years, you can expect to have easy EMIs.