What are the Eligibility Criteria for getting a Home Renovation Loan?

A home renovation can be an expensive affair, but it is a worthwhile investment – after all, your house is always going to be your most valuable asset. In addition, we’re spending more time than ever in our houses thanks to the global pandemic, so it is only right that we make it as nice a place as possible to be in.

One can opt for a personal loan for home renovation, known as a home renovation loan, to help up the budget. This can be due to a number of reasons, like wanting to renovate the entire house in a single go instead of in stages or to help you get over that financial hump to get the kitchen or bathroom of your dreams.

Eligibility criteria for a home renovation loan

Age

You need to be between 24 and 65 years old at the time of the completion of the loan repayment, i.e., when the last EMI for the home renovation loan is paid.

Income

Salaried people need to have a salary of at least Rs 20,000 per month and be able to furnish proof of at least two years’ employment in a stable job. Of these two years, you will need to be continuously employed for at least one year at one job. If you are a business person, then you need to be able to furnish proof of at least three years of experience in the field you currently conduct business in.

Documentation requiredfor a home renovation loan

NBFCs and banks only require the above-mentioned basic criteria to be met before they will consider you for a home renovation loan. However, to apply for the loan, you will require to furnish some documentation. This includes:

Proof of identity

This includes any government-issued ID like an aadhaar card or voter ID.

Proof of residence

Any government-issued ID like a driver’s licence or passport that displays your address will be sufficient. A copy of your ration card or electricity bill will be preferable.

Income proof 

For salaried people, a certificate stating that you have been continuously employed for at least one year will be required. In addition, bank statements for the last six months will be required, along with salary slips. If you are a self-employed individual, ITR (Income Tax Return) forms might be requested in addition to bank statements.

A home renovation loan can be used any way you see fit, whether it is for maintenance or to remodel, paint, redo the floors, or install new fittings in the house. A plethora of companies in India offer quick approval and easy disbursement, with flexible EMI options at competitive personal loan interest rates. You can determine the approximate EMI for your loan with the personal loan EMI calculator. So not only will the home renovation loan help you bring your home renovation timeline forward, but it will also let you pay it back in easy EMIs.