What is Home Improvement Loan?
This is one of the different types of loans available in the market that you can avail for various purposes like for renovating, modifying or refurbishing your house. The home improvement loan is like a home loan but with that, you can buy a new home and with this loan, you can make changes in your house to make it more beautiful and to decorate with the latest things.
You can make your home beautiful by taking this home loan in Delhi as this loan is available at a very low cost and easy to apply but like others, this loan also has two type i.e. secured and unsecured loans. So, let’s check them out that what is secured home improvement loans and what are unsecured home improvement loans.
Secured Home Improvement Loan:
If you are taking a secured home improvement loan then you need to give your home as a guarantee to the bank or lender and because of this it is also known as a mortgage loan as you are providing your home for the loan that can be seized if you are not able to pay back the loan but it also have some benefits as well like if you are taking this secured loan then you can get a higher amount of loan at a fixed interest rate and you can payback the loan easily in the tenure of 10-15 years and the interest is tax deductible which you can calculate using home loan calculator but it all depends on your age, location, and size of the property, credit score etc.
Unsecured Home Improvement Loan:
If we talk about unsecured home improvement loans then these loans don’t use your home as a guarantee but it is very risky for the lender. You can take these loans for a small amount but the interest rate is higher on this loan and you need to pay back the loan to the lender within 10 or less than 10 years. The rate of interest only depends on your credit scores and the main thing to know is that it is not tax deductible.
Advantages of Home Improvement Loan:
- This loan can be applied individually or jointly so if you have more than one owner of your house then all owners of the property have to apply for the home improvement loan.
- You can use this loan for many purposes like repairs, flooring, paintings, an extension of your house but this loan does not cover the furniture or fixing or repairing of any furniture in your house.
- You can payback the loan easily within 15 years with the minimum rate of interest.
- To apply this loan you just need some documents like your photos, cheque, original deed, engineers estimate of repairing or renovation work, last 6 months statements, duly filled the application form and your ID proof. And once all the documentation completes and your home loan eligibility is checked your loan will be approved instantly.
So, if you are planning to improve, modify or renovate your home and want to make it beautiful you should take a home improvement loan.