Customer Guide: Best Home Improvement Loans in 2020
There is a famous saying, “Home is where the heart is,” and it holds true even in the present times where individuals spend a major part of their life savings on buying and decorating their dream home. With time, the construction of the house can start showing signs of damages, or you might wish to undertake a significant renovation project. There could be no better occasion than the beginning of the new year for this.
However, the cost of construction and renovation has skyrocketed. The lack of funds might deter you from committing to an expensive renovation project. This is where a Home Improvement Loan can be a suitable option for you. Many financial institutions now offer Home Improvement Loans for their customers’ requirements at attractive interest rates.
Which are the best Home Improvement Loans for 2020?
Here is a list of top Home Improvement Loan offers, which you can consider for your home renovation or home extension project.
Tata Capital Home Renovation Loan:
Tata Capital is a leading NBFC of India that offers high-value Home Improvement Loans for its customers. It is an unsecured offering, i.e., you need not provide any collateral to secure the loan amount. The loan amount available starts from Rs. 75,000 and can go up to Rs. 25 Lakhs. The repayment tenor offered by the company varies between 12 months to 72 months, and the rate of interest starts from 10.99% per annum. The one-time processing fee levied by the company is 2% of the loan amount plus GST. If you wish to foreclose the loan, Tata Capital levies a foreclosure fee of 2% of the outstanding principal plus GST. To reduce the burden on your finances, the company also offers flexible repayment options that allow you to choose your EMI payments based on your comfort and convenience.
HDFC Home Improvement Loan:
HDFC is the most prominent private-sector financial institution in India. The maximum amount available as a Home Improvement Loan from HDFC Bank can go up to 100% of the improvement estimate for existing HDFC customers, subject to the condition that the total loan amount does not exceed 90% of the market value of the property. The maximum amount available for new customers can go up to 90% of the improvement estimate. HDFC Bank offers maximum repayment tenor of up to 15 years for the Home Improvement Loan. Interest rates for female applicants start from 8% per annum, and for other applicants, it starts from 8.25% per annum. The processing charges for a Home Improvement Loan from HDFC Bank are 0.50% of the loan amount or Rs. 3,000 (whichever is higher). There are no charges levied on pre-payment and foreclosure by HDFC Bank.
Bajaj Finserv Home Renovation Loan:
Being a leading private sector lending institution, Bajaj Finserv offers Home Renovation Loans up to Rs 25 Lakhs for its customers. This is an unsecured offering; hence, no need to provide collateral to secure the loan amount. The repayment period available varies from 24 months to 60 months. Bajaj Finserv Home Renovation Loan Interest Rates start from 12.99% onwards, with the processing fee being 4.13% of the loan amount plus GST. If you wish to foreclose the Bajaj Finserv Home Renovation Loan, the company levies a foreclosure fee of 4% of the outstanding principal amount plus GST. The biggest advantage is the Bajaj Finserv Flexi Personal Loan facility, wherein you only need to pay interest on the amount utilized from the allocated fund.
Bank of Baroda Home Improvement Loan:
Bank of Baroda is a premier public sector bank in India that offers various types of loans for its customers, including Home Improvement Loans. The maximum amount available as a Bank of Baroda Home Improvement Loan is Rs. 10 crores in Mumbai, Rs 5 crores in other metro cities, and Rs 1 crore in semi-urban and non-metro centers. The maximum repayment tenor available can extend to 30 years, including a moratorium period of 36 months. Interest rates levied by the bank starting from 9% per annum with the processing charges varying between 0.25% to 0.50% (min. Rs. 8.500 and maximum Rs. 25,000). In case you wish to foreclose your loan account, there are no foreclosure charges payable to the bank.
Bank of Baroda also offers a group credit life insurance cover, wherein the insurance company will reimburse the bank in the event of the death of the borrower, and the survivors need not pay anything.
Canara Bank Home Improvement Loan:
Canara Bank is a leading Indian Public Sector Bank that offers Home Improvement Loans up to Rs 2 Lakhs for its customers. The maximum repayment period offered by Canara Bank is 60 months, with the effective interest rates starting from 8.10% and going up to 10% per annum. The processing charges levied by the bank are 0.5% of the loan amount subject to a maximum of Rs. 10,000 and a minimum of Rs. 1,500. To avail of this loan, you must have Availed a Home Loan from Canara Bank as the bank offers this facility by extending mortgage against the hypothecated property.
IIFL is a well-known private-sector financial institution that offers home improvement loans for its customers. The maximum amount available depends on the value of the property and the eligibility of the borrower. The interest rates for IIFL Home Renovation Loan start from 8.70% per annum. The maximum repayment tenor available can go up to 20 years, with the processing fees being up to 1.75% of the loan amount. If you wish to foreclose your Home Improvement Loan account, the company does not levy any charges on pre-payment or foreclosure.
These are some of the Best Home Improvement Loans Available in India in 2020, which you can consider for your requirements. But be a diligent borrower and borrow only as much amount which you require so that repayment is easy to manage, thereby causing only happiness in your life with a refurbished home and beautiful surroundings.
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