Home Improvement Loan - Salaried and Self-Employed

Home Renovation Loans for Salaried and Self-Employed Professionals

Home renovation loans can be availed by both salaried employees as well as self-employed professionals. The interest rates for both categories of borrowers usually ranges from 6.75% to 11.25% p.a. The tenure of a home renovation loan ranges from 5 years to 30 years. The age and profile of the customer are also key factors in determining the tenure and interest rate of the loan. The maximum amount of money that can be borrowed through a home renovation loan is around Rs.75 lakhs as offered by most banks.

Home Renovation Loan Eligibility Criteria and Documents Required for Salaried Professionals

Customers can apply for home renovation loans either individually or jointly. All owners of a home or property for the renovation of which a loan is availed must be co-applicants, but it is not necessary for all co-applicants to be co-owners. Close family members can be co-applicants of the loan. Following are the documents you will need when applying for a home renovation loan:

1. Proof of Identity: Valid passport / Voter ID card / Aadhaar card / valid driving licence
2. Proof of Income: Salary slips for the past three months, bank statements displaying salary credits for the past six months, latest IT returns and Form-16
3. Other Documents: Proof of own contribution, appointment letter if the employee has been working with the current company for less than one year or employment contract, bank statements for the past six months to show repayment of ongoing loans, if any, and passport size photographs
4. Home / Property Documents: Original property title deeds, proof of no encumbrances on the property, estimate of proposed work from a civil engineer or an architect.

Eligibility Criteria and Documents Required for Self-Employed Professionals

Home renovation loans for self-employed customers can be availed by doctors, architects, lawyers, engineers, chartered accountants, company secretaries, consultants, contractors, commission agents, traders, etc. These loans can be availed individually or jointly and the regulations for co-applicants are the same as those for salaried customers. Following are the documents required for self-employed customers:

1. Proof of Identity: Valid passport / valid driving licence / Aadhaar Card / Voter ID Card
2. Proof of Income: IT returns and computation of income for the past three assessment years, the profit and loss account statements and balance sheet along with schedules/annexures for the past three years, and savings account statements of the customer and current account statements of the business for the past six months
3. Other Documents: Business profile along with the latest Form 26 AS, the company's articles and memorandum of association, list of shareholders and directors along with their individual shareholding certificate by a company secretary or chartered account in case the business entity is a company, partnership deed if the entity is a partnership firm, passport size photographs, particulars of current loans of the customer as well as the business such as installments, outstanding amount, purpose, security, balance loan term, etc.
4. Home / Property Documents: Original title deeds, proof of no encumbrances on the property, estimate of the proposed work from a civil engineer or an architect.

Features and Benefits of Home Improvement Loans

Following are the features and benefits of home improvement loans:

1. The tenure of the loan varies based on the lender and ranges from 5 years to 30 years
2. The loan can be availed for renovation work in your house, whether it is the installation of bathroom and kitchen fittings or even home extension.
3. Around 90% of the estimated cost for the proposed work can be availed through the loan.
4. Customers can choose between fixed and floating interest rate loans.
5. Simple and hassle-free documentation process.
6. Available to both salaried customers as well as self-employed professionals who are above 21 years of age.
7. Simple repayment process via monthly installment system.

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