Home is more than just a dream project of every individual. It’s actually related to the happiness beyond of all limits. The peace that one can have at his own home can’t be achieved somewhere else. However, in the times where the prices of the properties are touching skies, getting a home has become difficult for many people. Henceforth, for fulfilling their dream of a dream house, people generally opt for taking loans either from governmental or private banks or non-banking financial companies. However, bringing revolution in home loans and with an aim of proving homes for all under the affordable housing schemes, IFL Housing finance has made the lives of the people really hassle-free.
Unlike anything else in this world, homes also need renovation after a certain period of time. And unfortunately some middle class and lower middle class people don’t have enough money for the renovation of their homes. There are some other reasons too for which people need to take loans. By the way in case, you are also among them wants a home improvement loans, then you can rely completely on the IFL Housing Finance. As mentioned earlier that they offer various types of home loans under the affordable housing schemes, then this is also one of its types. But before you take home improvement loans, you must be aware about it thoroughly.
Henceforth, in this article, I’ll be sharing some indispensable information about the home renovation loans. Apart from this, you will get to know that how it works and who are actually eligible for the same. In short, you can have every single detail about home improvement loans.
What are “Home Improvement Loans”?
As the name itself portrays its purpose clearly, these are loans are used for financing the needs of home renovation. For instance, the needs can be like making some external changes to the home or even internal ones like flooring, painting, electrical work at home, remodeling kitchen or stonework paving walls etc. Home Improvement Loans possesses this much amount of potential that it can fulfill all your needs that do relate to the home improvements.
How Home Improvement Loans Work?
Understands your requirements:
The very first step that you need to take while going for the Home Improvement Loans is that you should understand and get an estimate of modifications that you want to do in your homes. This should be done with acute precision with the help of consulting a perfect contractor or an architect of your area. By doing this, you will be able to analyze the overall expenditure on the improvements in your home that you will have to bear up. Apart from this, there is one more reason because of which one should consult an architect and get an estimation of the expenditure. This is one of the most indispensable tasks as that estimated figure of expense can help the lenders at the time of loan approval when they have to analyze the loan eligibility irrespective of the estimation provided by the architect. However, one suggestion is generally given to borrowers that they should keep a range of estimated expenses of about 10-20%. This is because, the 100% funding will not be done by any of the banks or NBFCs.
Understand Your Eligibility:
The eligibility criteria for Home Improvement Loans are somewhat as similar as that of a regular Home Loan. But always remember that the banks or NBFCs will fund you not more than 80% of the whole cost of current property will be kept as a mortgage. However, income of the borrower also plays one of the most indispensable roles. The banks will go for a cross-checking of the financial capability of the customer to serve a new loan by considering past records. Ultimately the final amount of loan would be decided by seeking the purpose of home renovation estimation provided by the architect.
Understand The Payment Plan:
As mentioned earlier, generally, the banks or the NBFCs don’t provide complete fund all in a one go. It is done in parts in accordance with the progression of renovation of home. Banks/NBFCs can sanction the complete amount in a single move but will give disbursements at different levels. In other words, it can be concluded that whole of the disbursement will take place when the modification task of your home reaches at the last stage of complete work that was decided to be done earlier. Many times, the banks or NBFCs always keep a check at the site of construction via any agency or third parties. On the basis of the positive report which was submitted by the third party or agency to the banks or NBFCs, timely disbursements are done.
Understanding The Scope Of Home Improvement Loans:
What’s exactly hidden behind the scope of Home Improvement Loans is quite easy to understand. Basically, all types of modification or the addition in your home is built-up within the area where your home is covered. Listing down every single type of renovation is not possible but almost everything is covered in it. Some of the renovations are increasing height of wall, designing kitchen, flooring, stonework on floors or walls, electricity work in home, plumbing work in home, extension of balcony or room or even a floor. However, purchase of any durable product for your home won’t be included in the Home Improvement Loan.
Home improvement loans can be a great option to fund your renovation needs so that you could add value to your homes and enhance our liability.
I think that you have got complete information about Home Improvement Loans. In case if you are looking for the same at an affordable price, then you can get in touch with the IFL Housing Finance.