You wanted a dream house of your own so you opted for a home loan. The problem is solved, isn’t it? Actually not completely, as you still need a chunk of money to facelift your dream house. You definitely want to dress your dream house up to make it more beautiful and exactly like you have seen it in your dreams. The room that you are going to live with your spouse, the rooms in which your kids are going to study and play, the drawing room, the kitchen – every corner of the house must look like a newly wedded bride. Now logistically to make your dream come true you need a handful of money. You need it and here I am with the solution of your problems. The name of the solution is Home Improvement Loans. You can take that and can give your home a facelift anytime.
What is Home Improvement Loan?
Home Improvement Loans or HIL is a small portion of loan that the house owner takes from lenders to renovate the house. HIL covers all kinds of renovation measures. It can be construction or interior or paint or anything that involves the improvement of your living space is covered by the HIL.
In India you will find a bunch of financial institutions that provide HIL in easy terms. The best part about HIL is you don’t need a huge portion to renovate your house, even if you need large amount you can get good enough tenure to repay the money. HIL is no difference from Home Loans. The only difference is you are using it to re-construct your house and Home Loan is used to construct your house.
Types of Home Improvement Loan in India
HIL is nothing scary or special loan that you are not aware of until now. If you already have availed multiple loans still you can get HIL in easy terms unless you have horrible credit history or terrible credit score. There are many ways to get HIL from your lender or bank. Some are noted below for your knowledge.
To improve your dream house you can go for personal loans. Though it is much easier to avail, but at the same time bit expensive than other sorts of loans. When you take a personal loan to renovate your house generally you are required to offer your asset that is home as the security in most cases. It is a big loss for the owner as you are mortgaging a large amount of asset for handful of money. Also you can’t use your property for any other loan now. So PL is bit expensive here.
This is quite helpful here. If you don’t want to go for any other complicated loans above your home loan and car loan or any other loans you have already taken then go with top-up loans. These types of loans help the borrower to take over and above big loans for other small purposes like renovation of home.
You can always go for gold loans if you don’t have attractive credit history or good credit score. If the renovation is not as expensive as you dream of then you can always choose gold loan over anything else as your Home Improvement Loan.
Top 3 Best Home Improvement Loan in India
As said there are many banks and NBFCs that provide HILs today. If by any chance your bank is not giving you HIL or you don’t feel comfortable with the charges offered by your bank then here are the top 5 HILs available in India now.
State Bank of India is one of the oldest commercial bank of India. This is the reason for many people to believe SBI as the most reliable bank. When you avail a home loan from SBI that means you are getting your money financed through the most trusted public sector bank of India. This bank has special features to offer their customers, with customized products and reasonable interest rates. The interest rate for SBI home improvement loan is 8.45% P.A.
Axis Bank is the third largest private sector Bank in India. Availing a home loan from Axis Bank is always a good idea as the rate of interest and other charges are quite reasonable here. The repayment options is also flexible and pre closer of your loan is also allowed but that has certain terms and condition. With Axis Bank one can get the loan easily as the loan process is completely hassle- free and smooth. The interest rate charged for a home renovation loan is 10.35% P.a.
HDFC Bank is following Tata Capital here and takes the second position in the loan market. The interest rate HDFC charged for HIL is 11.49% which is less than Tata Capital and also the tenure of the loan is Up to 5 years from 1 year which is also lower than Tata Capital. Still it gets the second position, the reason is the 2.5% processing fee (one time) that you have to bear. The maximum limit of HIL is Rs. 25 Lac.
The third position has grabbed by ICICI bank. The HIL limit under this bank is maximum 20 Lac which is lower than the previous two. The tenure time and the interest rate are same as HDFC. Here it gets failed as the tenure time and the processing fee shows the same figures as HDFC. This is the 3rd most desirable HIL in India.
Tata Capital is currently topping the chart in HIL providers’ list. It offers you maximum Rs. 25 Lac of HIL at 12.50% fixed rate of interest. The tenure of the loan is from 1 year to 6 years. The best part about this loan is there is no processing fee charged by the institution.