If you want to give your home a totally new look to make it trendy, the one thing, which is highly required is renovation of your home. Home renovation or home improvement is also necessary to maintain your home and give it a new look. It is also important to increase its life. Nowadays, people invest huge money to renovate their home according to the latest market trends. This kind of makeover or improvement work requires a lot of money and time as well. For conducting such improvement work you want industry experts to provide you services and help. It is very important that you should estimate the cost related to the work you want to conduct. After evaluating the work and cost linked with, the one thing which comes to your mind do you have enough funds to carry out the work by your own.
If you don't have enough money or the estimated cost in that case you can look for other options to arrange the money. Either you can save the money over the period and postpone the work till you save it or you can borrow the money from any of the bank or non-banking financial institution. You can borrow the money from any of the non-banking financial institution or from any of the bank. DHFL offer home improvement loan for all loan financial needs. You can borrow the loan for any of the home improvement work such as new flooring, tiling, plaster of interior or exterior, painting or any other work related to interior or exterior of the home. DHFL offers home improvement loan for meeting your financial requirements related to improvement work. You can always get the loan based on your eligibility and repayment capacity. Here are some special features and advantages of the home loan.
Features and benefits of DHFL home improvement loan
Tenure and term: The tenure of your home improvement loan is minimum 1 year and maximum for 20 years. The maximum term however depends upon the age of the customer at the maturity of the loan. The term, however, does not go beyond the retirement age or 60 years, whichever is earlier and for self-employed it is 65 years.
Objective of the loan: Avail the home improvement loan to renovate or paint the house/flat you own.
Reduce your EMI: You can take the loan for maximum tenure of 20 years and reduce the monthly amount of the EMIs or bring it to the minimum. Making your EMIs most affordable and minimum helps in enjoying the life the way you were doing earlier before availing the loan.
Interest rates: The interest rates applicable is based on the DHFL's Retail Prime Lending Rate which fluctuates from time to time based on the money market conditions.
Processing fee: This is one time fee charged by the company towards processing your home improvement loan application and conducting other paper work related to your loan. For salaried and self-employed professionals the minimum processing fee is Rs. 5000 and maximum processing fee is Rs. 20,000. For self-employed non professionals the processing fee is 1.5% of the borrowed loan amount.
Easy repayment option: You can make payments through ECS (Electronic Clearing Service) based on standing instructions to your bank or you can also use post dated cheque drawn on your saving/salary account
Home loan tax benefits: It helps in availing the tax benefits under home improvement loan scheme. As per Indian IT rules, the present applicable exemption under section 24 is Rs. 1.5 lakhs for interest paid in a financial year and up to Rs. 1 lakh for the principal amount repaid in the same year. It helps you in saving up to Rs. 70,000 annually in tax.
Applicant & co-applicant: Plot/land loan can be applied by individuals. You can further enhance the loan amount by adding a co-applicant in your loan.
Simple & easy documents: For speedy processing of application and disbursal of loan DHFL require a few documents such as KYC documents, proof of income and banks documents, and property related documents.
Home improvement loan eligibility
You can get a loan of up to 100% of the improvement cost estimates as certified by an engineer/architect. It should be duly verified by the technical officer, subject to maximum of 75% of overall market value of the property or maximum of Rs. 50 lakhs, whichever is lower. You can increase the loan eligibility by addting the co-applicant in your loan applicant. However, the maximum loan amount is determined taking into various key points such as
- Repayment capacity of the borrower
- Age of the applicant/co-applicants
- Educational qualification
- Stability and continuity of income
- Total number of dependents
- Co-applicant's income
- Financial liabilities
- Saving habits and more
|Identity proof: PAN card, valid passport, voter ID card, valid driving license||Identity proof: PAN card, valid passport, voter ID card, valid driving license|
|Residence proof: Electricity bill, telephone bill, ration card, letter of employer, banks statement, pass book with residence address||Residence proof: Electricity bill, telephone bill, ration card, letter of employer, banks statement, pass book with residence address|
|Last 2 months salary slip/salary certificate||Copy of last 2 years income tax return along with computation of income duly attested by CA|
|Lasted Form 16 if the monthly salary is above Rs. 20000||Copy of last 2 years balance sheet and profit and loss account of the firm duly attested by CA|
|Bank statement of last 3 months including from page/pass book copy of all banks||Bank statement of last 6 months of the saving account and current account|
|Company profile for lesser known company||Copy of either Shop & Establishment License / VAT Registration or any other mandatory license / registration or old ITRs evidencing business|
|Copy of the Partnership Deed,Memorandum of Associations, Articles of Association (if applicable)|
|Copy of Tax Deduction Certificate / Form – 16A (if applicable)|
|Copy of Advance Tax paid / Self Assessment Tax paid challan|
(Updated on:21st October,2016)