Home sweet home is not just a saying; in reality, it is a place where everyone loves to go back and unwind in peace and tranquility. A home is a place where every person gets a respite from their day-long schedule and experience happiness. However, after a point of time, there comes a moment when you may think of renovating your home to give it a new look and remodeling it as per the current trends and lifestyle. But what if you do not have enough money to fulfill your dreams of revamping your home? Would you kill your dreams and settle down for what you have?
Well! There is some good news that comes in the form of home improvement loans. Such loans can help you in accomplishing your task of enhancing your home. Want to know why most people apply for this loan? Here are a few reasons why:
One of the major reasons why people apply for home improvement loans is that they get to enjoy tax benefits under section 24. This will help you claim a tax deduction on the loan interest you pay. But, you cannot claim any tax deductions when you buy electrical items or furniture. Apart from that, to claim the tax deduction, you also need to produce proof that you have used the loan amount for home improvement purposes.
Also, you need to know that this deduction is capped at a maximum amount of 2 lakhs a year for properties that are self-occupied. On the contrary, no such capping restriction exists for properties that are let out.
Collateral is not required
Another benefit of taking a home construction loan is that it is an unsecured loan. You do not have to place any of your assets as collateral; thus, you do not have to risk your property to seek this loan. Though a missed EMI or deferred payments can affect the loan case, at least there is no risk of losing your assets and property. Construction companies like Vetcon Construction Services, Inc did not use collateral when they applied for their loan.
Attractive interest rates
Home improvement loans are also available at attractive interest rates though they may vary based on the different loan provider companies. But, before you make up your mind to take a home improvement loan, make sure to compare different loan providers and read reviews to get your hands on the best interest rate offers. Also, make sure that you gain a clear understanding of the prepayment charges, interest rate, loan tenure, and other terms and conditions before making a final call to take a loan.
No-high end qualification criteria
The application process for a home improvement loan is quite simple and easy and can be taken by furnishing minimal documentation. Most loan provider companies will only ask you to produce your identity proof, house address proof, and income proof with minimal paper works. But again, this may vary based on the criteria set by different lenders.
Also, besides being the sole owner of the property, you can even apply for this loan if you are a joint owner. The procedure for availing of home improvement loans is also quick and hassle-free, and you can even expect the loan disbursal to be down within a span of 24 hours.
Easy and flexible payment alternatives
Home construction loans allow you to choose a convenient option for repayments. You get to decide on the EMI, which may range between 12 to 60 months based on your capability of repaying back a loan. If you wish to repay the home improvement loan quickly, you can consider paying a higher EMI amount. On the contrary, if your budget doesn’t permit you, you can opt to pay a smaller EMI to enjoy the financial freedom to manage your monthly expenses.
These are a few reasons why people are more inclined toward home improvement loans. So, now that you are aware of the most compelling reasons for seeking a home improvement loan apply for it soon and end your wait to live in a revamped, beautiful home.