Home Improvement Loans in India

Home is the most valuable asset of a person which he/she builds from his/her hard-earned money. But not all people are lucky enough to have their own house. Many people spend their entire life living in a rented house. The reason behind this is the low wage rate of India. Many people hard work day and night but still do not earn enough money to fulfill their needs. In today’s time creating a living out of a fixed salary is a little difficult. Not all people are financially stable. People belonging to the economically weaker section of the society or who are below the poverty line face a problem in purchasing something big like a house. Having a home is a dream of every person.

Looking at this problem, the government launched a scheme that is Pradhan Mantri Awas Yojana which stands for housing for all.  The Pradhan Mantri Awas Yojna Rural Home loan came into effect from 17.06.2015. According to the scheme, the interest subsidy will be provided on housing loans for the acquisition/construction of houses. The Credit Linked subsidy would also be available for the home loan availed for new construction and addition of rooms, kitchen, toilet, etc to the existing house as incremental housing.

Since it is a government scheme with a mindset of providing housing loans to maximum people, one can easily get the loan either for buying or even home renovation loans. One should be eligible for it. The home renovation loan eligibility rules for the loan are not harsh. The only condition is that the person cannot take a double loan for a house. While applying for a loan, he/she needs to provide the Aadhaar Card. Any adult working individual is treated as a separate household and can apply for the loan.

The documents for Home Improvement Loans in India that are required are as follows:

• Application form and your latest photograph
• House ownership Proof: Property Documents/Maintenance Bill/Electricity Bill
• Bank statement - Last 6 months bank statement
• Income proof. Salary slip for the last 3 months
• Investment Proof (if any)
• Proof of identity: Copy of passport/voter ID card/driving license/PAN cards
• Existing EMI
• Proof of address

Different organizations offer different rates. One can compare them using home renovation loan interest rate comparison. The rate of interest generally lands around 10.5% and above.

If one wants to build or reconstruct the dream house, he/she can easily take the loan under PMAY. Whether you live in an urban or rural area, you will not face any problem. It is one of the safest and most genuine medium to avail loans at low interest and high benefits.