While buying a home is one of the biggest achievements of life, you also need to make sure that it is properly maintained and upgraded or modified as per your changing requirements. Home improvement loans are perfect in such instances as they allow you to make excellent improvements to your home easily. In this post, we’ll have a look at some useful tips that can help you get the best deal on such loans.
As a homeowner, it is your responsibility to make sure that your home is properly maintained and is modified or upgraded as per your changing needs. These projects are generally very expensive, and people often find it difficult to pay for such expenses from their own pockets. A home improvement loan is what people prefer to get these changes done to their home.
Also known as home renovation loan, a home improvement loan allows you to borrow funds for renovation, internal and external painting, repair works, extensions, electrical work, waterproofing, tiling, flooring, and a lot more. Just like any other loan, once you have borrowed the funds, you can then easily repay the same through EMI’s.
If you are looking for home improvement loans, we have created a list of some handy tips that can help you get the best deal when applying for the loan.
- Check your credit score
Your CIBIL score is now a very important determinant of your credit worthiness. Every lender will check your CIBIL score to ensure that they are required to carry minimum risk by lending you the loan. So, make sure that you check your CIBIL score beforehand so that the bank does not reject your loan application.
- Ensure that you are eligible
Lenders have different eligibility requirements for loans. So, make sure that you check the eligibility criteria of the lender from whom you are looking to get the loan to make sure that the lender quickly accepts your loan application. If you have a good CIBIL score and are eligible for the loan, you can also try to negotiate the interest rate on loan to get the best deal.
- Make sure that you have all the property papers
Only a legal homeowner can apply for a home improvement loan. When applying, you’d be required to submit all the original title deeds of your home, no-encumbrances proof, and an estimate of the proposed work from a civil engineer or architect. Keep these papers ready to make sure that there are no delays in the application process and your application is quickly accepted.
- Select the tenure carefully
A home improvement loan is usually available for a tenure of up to 30 years if you are salaried and for 20 years if you are self-employed. You can make use of an EMI calculator to calculate the EMI you’d be required to pay for the loan amount based on the interest rate and tenure of the loan. Select the tenure carefully to make sure that repaying the loan is not a burden for you.
A home improvement loan is an excellent way to enhance the overall appearance and value of your property. Make sure that you use the tips mentioned above when applying for the loan to ensure that the lender accepts your application and you get the best deal.