The Home Improvement Loan Guide for 2014

Whether you are planning for an expansion, extension of another storey or a makeover for your house, you can always opt for a Home Improvement Loan. Here is your hands-on guide to help you to get the most suitable one possible.

Step 1 – Understand the type of renovation:

This is the first step of your home improvement project. You cannot determine the applicable Home Improvement Loan package without planning the total work and the estimated cost for the same. Thus, first consider the type of renovation that you would like to undertake in your house, and then opt for a Home ImprovementLoan. Here is a list of the possible expenses that you can get steady cash for from your lender.

• External or internal repair work
• Tiling and flooring
• Paint job – internal and/or external
• Plumbing and electrical work
• Home upgrade
• Waterproofing and roofing

Step 2 – Find out the type of house renovation loan:

To get an ideal Home Renovation Loan, you must first find the perfect loan scheme that suits your needs:

• Top up Home Loan: If you approach the bank that approved your Home Loan, chances are, they can approve your top up loan for renovation quite easily. If your finances are in order, it is easier to complete the loan processing quickly. This is the best one possible with the income tax rebate on the same.

• Home loan balance transfer with loan for house renovation: Some housing finance companies or banks don’t allow for a top up loan. You can transfer your home loan to another company that offers lower interest rates, a home renovation loan and better tenure.

• Separate Home Renovation Loan: While it is a little more expensive than theabove, it is a choice available for most borrowers. Regardless of the type of repair or renovation work, it is a much better option than a PersonalLoan.

Step 3 – Customize the loan offer:

These type of loans have certain benefits and limitations. So, you must make the needful adjustment to take maximum advantage of the money that you are borrowing. Analyze the following factors to optimize them in your favour:

• Processing fee
• Interest rates
• The exclusions and inclusions
• The Loan tenure

You certainly want to be able to repay yourHome Improvement Loan efficiently. So, while you customize the necessary details to suit your monthly cash flow, you must take your assets, liabilities, savings and fiscal details into consideration as well.