8 things you must know before taking a home renovation loan

financialexpress.com:

Often when your house gets old, you may need funds to renovate and repair it. A home renovation loan can be helpful to get you sufficient funds for this purpose. Home renovation loans are primarily offered by various banks and financial institutions to help homeowners fund the renovation or improvement of their existing homes.

These loans are specifically designed to cover the costs of repairing, renovating, or enhancing the functionality of your house. The amount of loan can vary depending on your eligibility and the property value. Here are some key points to consider when looking for home renovation loans.

These loans are specifically meant for renovation and repair work. They usually have a shorter tenure and lower loan amounts compared to home loans. If you already have an existing home loan, you can opt for a top-up loan. This allows you to borrow an additional amount over and above your existing home loan for renovation purposes.

Adhil Shetty, CEO, Bankbazaar.com, says, “Before applying for a home renovation loan, carefully assess your renovation needs and budget to ensure you borrow an amount that you can comfortably repay. Also, you must go through the terms and conditions of the loan agreement carefully.”

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It can vary among lenders but typically include factors such as income, credit score, and property value. You may need to provide proof of the renovation project, such as estimates from contractors or architects.

It is recommended to take the loan amount that is enough to complete the renovation of your house. You may be offered higher amount considering your income and property, but always avail the funds that you can repay without any stress. The loan