If you think about a home renovation or improvement the first thing that comes to your mind do you have enough funds to meet the required cost? Presently, home renovation is not just about painting your home or fixing the cracks and holes, but now it is more than this. You carry out various changes such as changing the floor, tiling, changing the cupboard of the kitchen, fixing new chimney, doing repair work and many other changes you can do. But, in most of the cases you want to make more changes, but you can’t do that because of insufficient funds. Now, no need to lose the hope as you can borrow the loan for home renovation from Indian Bank. It offers you home renovation work. However, the maximum amount and loan eligibility based upon your profile and monthly income and expenditures. Here are some important features and advantages of Indian Bank home renovation loan to understand it more closely.
You can borrow the loan to purchase household furniture, kitchen racks, cupboards, TV sets, fridge, computers, wall papers provisions, lighting, interior decorations, air-conditioners, kitchen chimney, modern gadgets for kitchen, modular kitchen and piped gas supply, cost of digging of bore well with suitable water lifting devices like jet pump set, compressor, solar system and immersible pump, etc.
Existing home loan borrowers and future home loan borrowers are eligible to take this loan. You should be an Indian resident to avail this it. Loan is available for NRIs as well. You should have a regular source of income.
Maximum loan amount
- The applicant will receive the loan of 30 times of the net monthly salary subject to maximum of Rs. 5 lakhs.
- The bank will provide maximum of 85% of the market value of the product or work and customers have to arrange remaining margin money at their end.
- To increase your loan eligibility you can include the income of your spouse if he/she is working in government/public organisation/reputed private sector.
- Your take home income should be more than 40% of gross income, with a minimum of Rs. 6000/- as net monthly income after recovery of proposed EMI.
Processing fee is one time charge taken by the bank to process your loan and for documentation work. Bank charges 1.173% of processing fee of the loan amount.
Interest rates for home improvement loan
The bank charges interest rate at 9.55% for home improvement loan from the customers.
Repayment of the loan
The bank does not offer any holiday period in home improvement loan. Maximum repayment period allowed for TV, computer and other electronic items with less life span is 48 months to 60 months.
Documents required for home renovation loan
- Duly filled application form along with 3 recent photographs
- Assets and liabilities statement in the Bank’s format from applicant(s), co-applicant, and guarantors
- Identity proof such as PAN card, voter’s ID card, passport, driving license
- Residence proof such as recent telephone bill, electricity bill, property tax receipt, passport, voter’s ID
- Business proof in respect of businessmen/industrialists
- Employment proof for salaried individuals
- Last 6 months salary slips
- Bank account statement of applicants/co-applicants of last 6 months to 12 months for verifying salary credit and other income proof etc.
- ITR and balance sheet for past three financial years in case of professionals, bussinessmen and self-employed
- Form 16/Income Tax/Wealth Tax returns for the last 3 years