I live in my own house, which needs repairs and renovation. There is no loan running on this house. Can I take a loan to renovate my house? What is the procedure for such a loan?
Prakash Adhikari, Noida
Any loan, especially when it is a home loan or home improvement loan, is subject to your credit profile and score. Home improvement loans are available these days, which have slightly different criteria than the rules that apply in case of a home loan. Moreover, the interest rate applicable for home improvement is slightly higher than for a home loan and the tenure for such loans is very short in comparison to the 20 year period for which home loans are available. Likewise, you cannot claim any tax deduction on this loan on the principal repayment, but you can claim deduction under Section 24 for interest payable on a loan taken for 'renewal, repairs or reconstruction' of property. Check with lenders on any specific terms and conditions that they may have on the paperwork needed in case of such loans and check with the bank that the definition of the terms is consistent with your expenditure.
