Home Renovation loan is provided for
In this architect estimate is required and on the basis of estimate, loan is released according to stage of renovation.The work undertaken must finish within 1 year.
- Tenure - 1 to 15 years .
- Interest rate - As applicable . The interest rate keeps on changing.
- Max funding - 80% of architect estimate , subject to market value of property .
- Age limit - max 65 years or retirement age , whichever is earlier for salaried and 70 years for self employed.
- Income tax benefit - principal repayment upto 1 lac under section 80(c) and interest repayment upto 1.5 lacs under sec 24.
- Loan foreclosure penalty - Means paying off the complete loan at one go.Most bank charges 2 to 3% of principal outstanding as penalty.
- part payment - Means paying some part of loan. Most banks don't charge any penalty
3 documents are required for a loan to get disburse
- Sanction letter: - Loan sanctioning is based on the financial documents,personal documents and past credit history of the borrower. Based on the information provided banks calculates the eligibility and decides on the loan amount.
Documents required for loan sanctionning are :-
Documents in case of salaried
Documents in case of sole proprietor (proprietorship)
Documents in case of partner (partnership)
Documents in case of director (private limited company)
- Legal report: - In this complete chain of property documents , starting from allotment of the property till the last transaction , are required . Based on these documents legal report is made.
- Technical report: - In this approved map by municipal authority is required and based on it physical verification of the property happens. Certain things are checked like area of property , usage of property(Residential or commercial) and based on it report is made .
If all the 3 documents are approved by the bank , disbursement documents are signed and cheaque is made in name of borrower .
This complete process takes 15 to 18 days , subject to complete documents are provided by borrower .