Just like getting married and begetting a child is a lifetime responsibility, purchasing a house requires frequent maintenance, from repairs and upgrades to waterproofing, woodwork, tiling, and flooring. Most homeowners finance home repairs from their savings. However, if the home requires a major overhaul, it might need more funds than they have.
In such circumstances, they don’t need to postpone their home renovation plans till they amass the necessary funds. They can simply walk into a financial institution or visit their website to take a home renovation loan. PNB Housing is the most reputed name providing home improvement loans for salaried employees and self-employed professionals at attractive interest rates. Let’s learn more about PNB Housing home improvement loans.
Purpose of Taking a PNB Housing Home Improvement Loan
PNB Housing home improvement loan is a unique product that allows homeowners to conduct various home repairs and upgrades on their properties. Borrowers can use the loan amount to completely renovate the property, change the tiling or flooring, repaint the interiors or exteriors, revamp the electrical or plumbing work, or conduct any other repair or upgrade fixed to the building.
Who is Eligible?
Property owners looking to upgrade their assets can apply for a renovation loan individually or jointly. While evaluating the loan applications, PNB Housing examines several factors, including the following:
- Age: Applicants should be at least 21 years of age to apply for a home improvement loan from PNB. The younger the age, the better the loan eligibility. However, the applicant should be at most 70 years at the time of loan maturity.
- Occupation: Both salaried employees and self-employed individuals can apply for a home renovation loan from PNB. However, their monthly income must be over ₹ 15,000 to qualify for a loan with over three years of work experience.
- Credit Score: The higher the credit score, the easier the loan eligibility and the lower the interest rate. A credit score of 611 or above indicates a consistent repayment history and responsible credit behaviour, reducing the default risk and attracting favourable terms and conditions.
Home Improvement Loan Interest Rate
Home renovation loan interest rate largely depends on the loan amount and the applicant’s credit score. PNB Housing interest rates vary depending on the applicant’s occupation, credit score, and loan amount. Interest rates for home improvement loans of up to ₹ 35 Lakh are slightly lower than those for higher loan amounts.
Moreover, salaried and self-employed professionals enjoy a lower interest rate than self-employed non-professionals. For instance, salaried employed and self-employed professionals with a credit score of over 800 enjoy the lowest interest rates. In contrast, self-employed non-professionals new to credit with a credit score of around 611 get the highest interest rates.
Loan-to-Value Ratio
Most financial institutions determine an applicant’s loan eligibility based on their credit rating, monthly income, and repayment capacity. The more balanced their finances are, the higher the loan amount they can borrow. However, loan seekers must evaluate their requirements and borrow an adequate amount needed for the renovation project. Over-borrowing unnecessarily will increase the debt burden and make repayment harder and prolonged.
Documentation Requirements
Depending on the work profile, aspiring borrowers must provide a few necessary documents to support their renovation loan application. These include the following:
- Loan application
- Photograph
- Age proof
- Income proof
- Address proof
- Latest education qualification degree or certificate
- Property-related documents like approved plans and title documents
Tax Benefits
Home Loan borrowers can enjoy a tax deduction of up to ₹ 2 Lakh per year on the interest payments under Section 24B of the Income Tax Act 1961. Within that clause, the borrowers can also claim a tax deduction of up to ₹ 30,000 on the renovation loan interest paid for the home improvement loan. However, property owners can claim this deduction only if they self-occupy the house. The borrowers cannot claim these tax benefits if the property is rented out.
With all these benefits and features, home improvement loans from PNB Housing become an ideal funding choice for renovation projects. Take a home renovation loan from PNB Housing and revamp the house according to your desires and standards.
