Home Loans Financial Portal

Home Improvement Loans are those types of loans which are issued to the owner of a property for improvements like maintenance and repairs, replacement of any sort of equipment or structural elementsn tiling and flooring, waterproofing and roofing, complete renovation of the interiors and other additions and alterations. The definition of home improvement loan has changed considerably in the recent times. It now provides greater consistency among reporting institutions. The maximum amount issues in the home improvement loans also vary accordingly. Some 100% of loan is sanctioned to an old customer and all the new customers are generally given 85% of the cost of improvement. The maximum amount however completely varies from customer to customer. The repayment is process is also quite flexible and is carried out through Equated Monthly Instalments or EMIs. The home improvement loans can either be taken on an individual basis or jointly. The amount of the loan is however subjected to the total value of the property.The minimum age of an individual applying for home improvement loans should not be however, less than 21. It is on this age that the term of the home improvement loan varies. The factors on which the rates of home development loans depend are as follows:

• The actual amount of loan.
• The total tenure for which the loan will be taken.
• The type of loans taken for improvement of the house.
• The type of customer to whom the loan is issued and his capacity of repayment.
• The loan policies of different companies. It should be noted that the interest rates differ in the case of private sector and in that of public sectors. During the festive seasons the companies. The rate of interest also varies according to the date of loan disbursement and is set according to the policy of each bank.

The application process of home improvement loans is also very easy and the indivdual or the professional or the company can apply by simply filling up the application form. The documents that are required for the approval of home improvement loans are different in case of self employed professionals and salaried individuals. The requirements for a salaried customer are application form with photograph, the latest salary slip, Form 16, residence and identity proof, the bank statement of last 6 months, processing fee cheque. The requirements of the business men vary by only 4 documents that is the proof of educational qualification, proof of business existence with the complete business profile and last three years income tax return, personal and business bank statements of the last three months and the income statement and balance sheet of the last three years. Rest of the documents remains the same. All the banks that provide home improvement loans include HDFC Bank, Bank of India, IDBI Bank, ICICI Bank, State Bank of India, Standard Chartered Bank, Bank of Baroda, Development Credit Bank, Citibank, Union Bank of India and UCO Bank. The terms and conditions may vary from bank to bank.