Easy Home Renovation with a Loan Against Property - Loan Trivia


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Tuesday 30 January 2024

Easy Home Renovation with a Loan Against Property

A loan against property is a secure tool for funding various big-ticket expenses which other credit tools may fall short of. Since this tool has no end-use restriction, it can be used to fund your home renovation expenses too. Whether it is adding a new modular kitchen, adding a new wing to your home, or fixing a leaking ceiling, a loan against property for home renovation can help to solve it all. There are several benefits for taking mortgage loan for home renovation. Let us go through them.

What are the Benefits of Taking a Mortgage Loan for Home Renovation?

Here are the benefits of availing a mortgage loan/loan against property for house renovation:

Easy and Simple Approval Process

It is easy to avail of a loan against property as the loan approval here typically entails relatively easy-to-meet eligibility criteria and minimal documentation. The loan gets sanctioned within days if you meet the loan eligibility criteria and have all the required property documents. 

High-value Loan Sanctions

These loans are popular for home renovations as they require quite a hefty sum for expenses. Lenders provide borrowers with funds equivalent to 75-90% of the mortgaged property’s current market valuation, up to Rs.5 crores.

Retain Ownership of Property

In this type of loan, the borrowers enjoy the privilege of retaining the ownership of the mortgaged property even after pledging it as collateral for the funds. Thus, they can also continue using the property while it serves as collateral. Thus, loan against property for home renovation is a good option when availing funds for home improvement.

No Restrictions on End-Use

In a loan against property for home renovation, the lenders do not levy any restrictions on how borrowers can use the received loan fund. Here the borrowers are free to use the received loan amount as they deem fit and meet all home renovation expenses.

No Foreclosure or Prepayment Charges

Borrowers having surplus funds can make prepayments to close the loan before the repayment tenor officially ends. There are no penalty charges for the same. This is an added benefit of taking mortgage loan for home renovation and prepay when you have extra funds.

Long Repayment Tenor

One of the benefits of taking mortgage loan for home renovation is that here lenders offer borrowers long repayment tenors that can span across decades. Hence, the borrowers can enjoy a comfortable and stress-free repayment schedule while keeping their budgets in place.

Competitive Interest Rates

Loan against property interest rates are reasonably low as compared to other credit tools since they are secure in nature and the lenders have low risk involved. Borrowers can avail of the lowest available interest rate by having a healthy credit profile.

Final Words

Thus, we can say that loan against property for home renovation is the best credit option when you need funds for home improvement and renovation purposes. They not only come at low interest rates but also offer long repayment tenor which is good for your pockets too. So, enjoy upgrading your home while keeping your financial situation steady.

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