Home improvement or home renovation is all about giving your home a total new look. Now, most of us want to give our homes a trendy and fresh look. You can think about various options and makeover ways to renovate your home. You can renovate your home totally or you can renovate a specail area of your home such as your living area, garden, kitchen or bedroom, whatever you think require a new touch. If you have plenty of ideas to give your home a 100% makeover, but funds is something which is dragging you behind. No, need to feel shattered or give away your spirit of giving your home a much trendy look as Canara Bank's home improvement loan is here to help you out. You can borrow the home improvement loan from canara bank based on your monthly income and eligibility. The maximum amount of loan depends upon your repayment capacity and eligibility criteria. Let's find out more about Canara Bank's home improvement loan to understand it minutely.
Objective of home renovation loan
You can avail the loan for the purchase of household furniture items, refrigerator, fans, air conditioner/s, to put up wardrobes or any other household items.
Eligibility for loan approval
- Owner of house/flat who are salaried individuals/individuals engages in business/professionals/self-employed.
- NRI are also eligible to apply for loan.
- Salaried individuals are also eligible should have a minimum monthly take home salary of 25% of their gross salary or RS. 2000/- after meeting the loan installment for the proposed loan.
- Professionals and other non-salaried personns should have a minimum annual income of Rs. 50000 to be evidence by Income Tax assessment order/return.
Maximum loan amount and margin
- If you will avail the home renovation loan along with housing loan from Canara Bank, amount upto one year's gross salary/income over and above the normal eligible amount for housing finance.
- In you are applying for home renovation loan only in that case your one year's gross income/salary will be considered to determine the loan quantum under this scheme.
- The maximum loan amount for home renovation is Rs. 2 lakhs. Higher quantum can be considered based on the customer's profile.
- If availed as a part of the housing finance from out bank, then, the margin stipulated is same as margin stipulated for Housing Loan. In other cases, the margin is 20%.
Repayment of loan
- You can make the repayment of the loan in monthly equated instalments
- The maximum tenure of the loan is upto 60 months
- The processing charges payable is 0.5% of the loan amount subject to a minimum of Rs. 1500.
- The maximum processing fee for the loan is Rs. 10,000, however it is subject to change from time-to-time.
Disbursements of loan amount:
The loan amount will be normally disbursed only after acquiring ready built house/flat or compeletion of construction of house/flat or completion of repair/renovation, etc., where the loan is availed along with housing finance. If the loan is sanctioned independent of a housing loan then, the loan can also be disbursed against proforma invoice,etc.
Documents/Formalities for the loan:
- Stipulated loan application 2 passport size photographs
- Latest salary certificate and Form No. 16
- ITAO/IT returns (for professionals and non-salaried persons)
- Performa invoices cost estimates