The DHFL Home Improvement Loan offers up to 100% financing of your estimate to renovate or redo your house. The loan can be availed for a tenure of up to 10 years and can be repaid through the option of EMI. This loan also makes you eligible to avail tax benefits sections 24(b) and 80 C for amounts up to Rs.1.5 lakh and Rs.2 lakh, respectively.
DHFL’s current Retail Prime Lending Rate (RPLR) is 19.42% and the home improvement loan interest rate starts at 9.75%.
While availing a home loan or a home improvement loan, there are other charges and fees associated with the process. Below are other charges and fees for your reference:
|Type of Charges||Amount|
|ECS/Cheque Bounce||Rs.500 + GST|
|Bank Charges on ECS/Cheque Bounce||At actual|
|Overdue Charges on Default EMI/Pre-EMI||18% p.a. on the outstanding home loan amount|
|ECS/Cheque Swapping (Per Set)||Rs.250 + GST on each swap|
|Pay Order/DD Issuance||Rs.150/lakh or actual charges (whichever is higher) + GST|
|Legal||Applicable on a case-to-case basis|
|Collection Pickup||Rs.250/visit + GST|
|Non-Encumbrance Certificate||At actual|
|Stamp Duty/Franking Charges||As per applicable law|
|Copy of Property Documents||Rs.500 + GST|
|Duplicate No Dues Certificate||Rs.250 + GST|
|Statement of Account/Provisional IT Certificates||1st Instance: No charges Subsequent: Rs.250 + GST|
|Foreclosure Statement||Rs.500 + GST|
|Document Retrieval Charges on Closure of the Loan||Rs.1,000 + GST for loans up to Rs.10 lakh Rs.2,000 + GST for loans above Rs.10 lakh|
Like a home loan, the DHFL home improvement loan also comes with several eligibility criteria as mentioned below:
You have to submit certain documents to apply for this loan that are listed below:
|ID proof documents (any one of the following)||
|Address proof documents (any one of the following)||
|Income Documents for Salaried employees||
|Income Documents forSelf-employed professionals and non-professionals||
DHFL offers loan amount of up to 100% of the quotation to a maximum of 90% of the market value of the property (whichever is lower) for loans up to Rs.30 lakh. The improvement estimate/quotation will be verified by the technical officer.
To qualify for a home improvement loan, you must be:
Co-applicants to the home improvement loan can be your spouse/parents.
Like all home loans, a home improvement loan is offered with two types of interest rates – fixed and floating rate of interest. A fixed rate of interest is applied at the time of the loan being sanctioned and disbursed and remains the same for the entire tenure of the loan.
A fixed rate of interest for a home renovation loan offered by DHFL usually ranges between 9% p.a. and 12.5% p.a. Self-employed individuals may be charged a higher fixed rate of interest than salaried individuals. As for the floating rate of interest, it fluctuates as per DHFL’s prime lending rate and it’s typically lower than that of a fixed rate.
Market conditions influence the interest rate and are dynamic. In India, interest rates are usually calculated by daily/monthly/yearly reducing balance method. DHFL calculates the interest rate based on the monthly reducing balance method.
You can repay your home improvement loan EMIs through Electronic Clearing System (ECS) or National Automated Clearing House (NACH). This is based on the standing instructions you have given to your bank. Also, you can pay the EMI through postdated cheques, drawn on your savings/salary account; however, this is applicable only for locations where either the ECS or NACH are not available.
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