If you need money for any repair, construction, renovation or improvement work of your home, then you can borrow a home loan from any of the public sector or private bank. Besides, you can borrow the home loan from any of the non-banking financial firms as well. If you are working in an organised private sector or in any government job with a regular source of income, then you are eligible to borrow the loan from these financial entities. However, the process of loan application is more or less similar in most of these financial entities. You can borrow the loan based on your eligibility and repayment capacity. Indian Overseas bank offers you home renovation loan for meeting all your financial requirement of renovating your home or carrying out improvement work in your home. The bank offers the loan for maximum of 15 years. But, before you apply for the loan and follow the other process of the loan, let's take a close look at the loan features and benefits to understand it better.
Features and Benefits of Home Improvement loan
Objective of the home loan:
You can borrow the home loan for repair, renovation, up-gradation, modifications or any similar type of work such as conducting routine repairs, painting of home, rewiring, changing the tiles, fixing the flooring, making addition in cupboards, doing wooden work,etc., to the existing house or flat.
All the salaried individuals in service with a take home pay of not less than 50% of gross salary or a business man or a professional with at least 3 years standing in the line of activity. He/she is eligibile to borrow the loan. To increase your loan eligibility you can apply for joint loan as well.
Maximum loan amount
The bank offers maximum loan amount of upto Rs. 15 lakh for undertaking the renovation and improvement work of the home. However, the maximum loan amount varies from customer to customer depending upon the repayment capacity and monthly income of the customer. The minimum loan amount is Rs. 25,000.
Interest rate for home improvement loan
The rate of interest offered by the bank for home improvement loan is 9.70% p.a. floating.
Repayment of loan
You can repay the loan in maximum 144 equated monthly installments. The maximum repayment period also depends upon the number of years left in services in case of the person is salaried.
Loan holiday period
the loan holiday period is maximum 3 months. You can start repaying the loan only after the 3 months from the date of loan borrowed.