Can Home Loans Include Renovation Costs?

Few years back, I was in an urgent need to renovate my house. However, to be honest my financial condition was not that great. Hence, my sister suggested that I avail a home improvement loan. I was not sure about the fact that whether can home loans include renovation costs? 

I asked my banker friend Ashok, “Can you add renovation costs to home loan?” He told me that a home loan is a loan obtained by homeowners in order to purchase, construct, or increase the value of their residence. It gives the homeowner the ability to borrow money to pay for home renovation expenses and is often secured by the actual property, like a mortgage.

You can apply for a home improvement loan to pay for home renovations and repairs. The loan can be used to remodel a home's interior or exterior, including,

• Waterproofing

• Plumbing

• Sanitary work

• Painting

• Whitewashing

• Tiling

• Flooring, and so on.

Home improvement loans are basically home loan with renovation costs. The interest rate of a home improvement loan in HDFC bank ranges between 8.70 - 9.60%. Let us understand the advantages of opting for a home improvement loan;

• Tax benefit:

You receive a tax break on the interest portion of a loan for home improvements; specifically, you can claim a deduction for the interest you pay on these loans up to a maximum of Rs. 30,000 annually (under section 24).

• Quick Processing:

Loans for home renovations are processed quickly because there is little paperwork to do and it is easy. So that you can begin your remodelling work as soon as possible without having to wait a lengthy time for your loan application to be accepted.

I hope this suffices your query about can home loans include renovation costs. I hope this helps:)

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