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FinFIRST Blogs
Buying a property to live in is only half the job done. The real work begins when you start to transform it into a home. Furnishing your house, hanging your favourite paintings, finalising the decor, etc., takes not only time but also costs money. A top-up loan - such as a home renovation loan - can be the perfect way to cover these costs.
Read on to find out what is a top-up loan and how to determine your top-up loan eligibility.
Home improvement loans and home loans
While a home loan primarily covers the costs of purchasing a house or property, a home improvement loan covers expenses such as renovation, refurbishment, or repairs of your house. You can avail of this loan as a top-up loan and make changes to your house without worrying about the costs. The good news is that you can also club it with your existing home loan.
The home improvement loan option is available anytime and is based on the property’s value. Here are the main features and advantages of a home renovation loan:
Easy top-up loan eligibility
The eligibility criteria for a home renovation loan is pretty straightforward. You can apply to the lender for a top-up on your existing home loan, and the lender will disburse the funds. For instance, the eligibility rules for a top-up loan from IDFC FIRST Bank require you to have a minimum annual income of Rs 1 lakh and at least three years of job experience. There are no additional documents required. You only need the basics like a PAN card, income proof, etc., and you can get the amount disbursed in no time.
Long tenures
The tenure for a top-up loan can be up to 20 years, which gives you ample time to repay it at your preferred pace.
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Attractive interest rates
The interest rate on a top-up loan typically starts from 7.95%. However, the actual rate will depend on your credit score and the home loan amount.
Tax benefits
You can claim a tax benefit on your interest on home improvement loan under Section 24 of the Income Tax Act as per conditions prescribed therein and save money while renovating your house.
High top-up loan amount
Top-up loans offer high loan values that can go up to 75% of the property’s total value. This includes the top-up value as well as the home loan, giving you enough leeway to decorate, repair, or refurbish your house.
Conclusion
Since a home is a once-in-a-lifetime purchase for most people, your house must turn out just the way you want it. Home improvement loans are an excellent option for homeowners and provide a lot of liquidity. You can use the funds to renovate or furnish your house the way you want without worrying about running out of funds.
Now that you know what is top-up loan, use it to get the home of your dreams!
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
