Are you planning to rehaul the decor of your house? Though you need a sizable amount of funds as the overall price can get steeper. A home improvement loan from HDFC Bank can come handy in such a moment. Home Improvement helps you to incorporate the aesthetic decor, sketch new interior ideas and let you paint the vibrant shades in your wall. The Home Improvement Loan Scheme is a financial package that assists in carrying the modification work in your home. It falls into the category of the Housing Loan, but one should not confuse it with HDFC Home Loan which fulfills the purpose of buying a home.
Here is how to apply for a Home Improvement Loan with HDFC Bank
Duly filled application form:
The process of availing a home improvement loan begins with the borrower filling the application form. This form is the basic document where the loan applicant has to furnish details about his name, address, contact number, occupation, annual income, and other related things. Besides, some other essential facts like what is the improvement or renovation task you wish to undertake, what can be the estimated budget of this improvement task and the down payment you can afford. Remember that you need to put down all the details about you in the application form.
Identity, income, employment and residence proof:
The applicant not only has to fill all the necessary details but also needs to carry the original document of identity, residence, income and employment proof along with the softcopies. The identity proof can be anything like the Aadhar Card, Electoral Voter Card, Passport, Pan Card, etc. The residence proof includes the electricity bill, voter card, ration card, and driving license. Besides, whenever opting for any loan, the borrower must show his employment and income aspects to the lending institution. There is a certain employment threshold with job experience and monthly salary that individuals should check. The proof of income can be given from the salary slip or bank statement of the last six months.
Photograph:
During the loan application process, the loan borrower also has to submit his photograph. It has to be a passport-sized photograph that the banks usually affix with the application form.
A cheque for processing fee:
If the lending institution is convinced by your capability for loan repayment, the housing improvement loan process is initiated. The banks carry the process by charging a processing fee. The processing fee is a nominal amount which is about 0.25% and 0.50% of the principal loan amount plus applicable GST. This fee is charged to check the credentials and valuation of the property by the bank. The cheque of the processing fee has to be given by the applicant at the time of filling the application form.
The original title deed of your home:
The original title deed of your house refers to the legal instrument by which the ownership of the property is in the name of the buyer. This document is required for background checks whenever the borrower applies for any category of housing loan.
No encumbrance certificate:
A no encumbrance certificate is a document that is provided by the registration authorities. Any transactions that deal with property need this certificate that acts as evidence for free title and ownership. It also implies that there are no dues left in the property. This certificate constitutes a vital part of the application process of home improvement loans by HDFC Bank.
An estimate of proposed improvement from an architect:
A loan applicant should provide an estimate regarding the improvement work that will be carried out in the home. An estimated budget for this renovating task has to be prepared and approved by the architect, civil engineer or interior decorator. Depending upon this estimated cost, HDFC Bank will outline the loan amount for the applicant.
The HDFC Home Improvement Loan application procedure is simple, and hassle-free with easy monthly repayment through installments. This credit facility can spruce up your home, as it can be used for enhancing different features like flooring, painting, exterior, and interior repair work, purchasing the furnishing and many others.