All you need to know before you get a home renovation loan - PowerPoint PPT Presentation

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All you need to know before you get a home renovation loan

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You can get a home renovation loan as a top up to your housing loans or by itself too. To avail of a home renovation loan as a top you need to meet specific criteria though. Here’s the eligibility you need to meet. – PowerPoint PPT presentation

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Title: All you need to know before you get a home renovation loan


1
All you need to know before you get a Home
Renovation Loan
2
  • Home finance is an extremely versatile financial
    tool.
  • You can use some it to purchase a new home, to
    construct a new home or even to renovate your
    existing loan.
  • When you buy new home, you need to maintain it
    too, in order to keep it look as good as new.
  • But home renovations can get very expensive, and
    if you already have home loans to pay off, it can
    be difficult to save enough money for a home
    renovation.
  • But home finance a solution for that. You can
    apply for a home renovation loan to provide for
    it.

3
  • You can get a home renovation loan as a top up to
    your housing loans or by itself too.
  • To avail of a home renovation loan as a top you
    need to meet specific criteria though.
  • Heres the eligibility you need to meet.

4
Minimum Period
  • You need to have started repayment of your
    housing loans and paid housing loan interest for
    a certain period before you are eligible for your
    home renovation loan top-up.
  • The minimum period can be different for different
    banks.

5
Loan to Value Limit
  • LTV is the amount youre can borrow on your
    existing housing loans.
  • The ratio is usually fixed at 80-85 of the
    present value of your property. 

6
Tenure
  • Your top-up loan tenure cannot exceed the
    remaining term of your home loan.
  • The tenure of a top-up loan runs concurrently
    with the home loan tenure and both loans should
    be paid up at the same time.

7
If you wish to get a home renovation loan by
itself, here are five things you should know
about it.
8
How to apply
  • If your home is under a co-ownership then you
    should have your loan co-signed by the other
    owner.

9
Tenure of Home Renovation Loan
  • The tenure for this loan is very flexible. You
    can get loan from anywhere between 12 to 360
    months.

10
Documents you will need
  • The person applying and the co-signee have to
    give their documentation for the loan. This
    includes a KYC, salary slips, bank documents,
    house agreement, and the expansion layout if they
    want to make extensions on the property.
  • One may also require a No Objection Certificate
    (NOC) by the municipal/building/ housing board.
  • Make sure all your plans are authorised by your
    local authority.

11
What about EMIs
  • If you apply for this loan as a top-up for your
    home loans, then the EMI will be added to your
    existing interest rate and you will have to pay
    only one EMI.

12
Thank You
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