Which city are you from? Please select city here.
Keep track of your shortlisted properties here.
Shortlist a property to get started.
 |
 |
The tax deduction is available not only for the purchase or construction of a house, but also for loans taken for the purpose of repairs and renovation of the house. Such loans are typically called “home improvement loans”. The interest paid on the home improvement loan is tax deductible up to Rs 30,000 per annum. Home improvement loans have been introduced by quite a few banks for repairs and renovation such as internal and external repairing, waterproofing and roofing, complete interior renovation, tiling and flooring, etc. Luxury items and fireplaces are generally not eligible.
 |
 |
A home improvement loan is distinct from a loan taken to acquire or construct a house. These loans are given for implementing repair works, healing and renovations in a home that has already been purchased. To avail the home improvement loans, you have to first estimate the amount required for extending the house and then submit the plans to your bank. Home Improvement Loans are sanctioned only after the original property papers are in order. The loan will not be sanctioned without them. Therefore, if an individual has an existing housing loan from a particular housing finance company, then he will have to necessarily opt for a renovation loan from that housing finance company.
Tax deduction is not only available for the Home loan taken for the purchase or construction of a house but also for Home Improvement Loans taken for the purpose of repairs and renovation of the house. However, Principal payment on such a loan is not eligible for deductions. Only owners of the home or co-owners are eligible for tax benefits.
Under Section 24, the interest paid on the home improvement loan is tax deductible up to Rs 30,000 per annum. If you are already servicing a home loan and availing of the tax benefit for the interest paid on the loan, then the combined overall limit for the tax deduction for interest paid on both the home loan and home improvement loan is Rs 150,000.
In case the interest paid on the home loan is Rs 120,000 or below, then you will be able to get the maximum benefit of Rs 30,000 on the home improvement loan provided you have paid so much interest during the year.
The home improvement loan is a specially designed loan system which caters to the need of the homeowner in improving, restoring or renovating their existing homes. A number of lenders have made their presence felt to add to the value of the home improvement loan system whilst making it one of the best loan options to bank upon to game with your home improvement necessities.
To avail the home improvement loans first you have to estimate the amount required for extending the house and then submit the plans to your bank. The bank provides 85-90% of the estimated amount whereas you need to provide the rest. Once the ‘technical department’ of the said housing finance company has approved the quotation only then the lender evaluates your repayment skills and the loan will be disbursed.
 Having any query regarding Home Loan? Let our Expert help you. Click here. |
Best home improvement loan, Home improvement loan application procedure, Home Improvement Loans, Indian Home Improvement Loans, Tax benefits on a home improvement loan, Tax deductions on Home improvement Loan, Working of Home Improvement Loans
CommonFloor Property Search Mobile App now available on Android, iOS and Windows!
Ya, home improvement is not so cheap. We have to spend a lot of expenses on it. Thanks for sharing this home loan facility. It would be beneficial for those who are searching for loan for their home improvement.
Very informative post as cleaning of our homes and offices are very necessary and for this we must hire any agency who will take all the responsibility of cleaning. While hiring any company we must calculate all their policies and that compare them. For this if we have to pay some money then we must not compromise with it as cleaning is very necessary as clean house or office will keep away the diseases etc….
Hello,It is very nice article.A home improvement loan is taken to acquire or construct a house. These loans are implementing repair works, healing and renovations in a home that has already been purchased.Keep sharing with us.
It is most important that we clean our house for saving our self from the harmful disease.The renovation is the must for that purpose and this article is very helpful to me.It is the basic to clean our house.Great concept.
Excellent information it is really. Friend on mine has been searching for this tips.
Loan application to lending companies is not an easy task. Also, it is money that we are talking about here. We should spend wisely.
The biggest benefit you can get with a secured home improvement loan is the low, fixed interest rate you can get. When you go with an unsecured loan, the risk is higher for the bank
some really really wonderful info on this page and some of the responses are definitely cool too
Getting my tax facts straight. Oh well.
Hi, Can anyone of you tell me whether the Home Improvement Loan is Transferable from person to another? If yes will the Tax Benefit remain the same. Any thoughts on the same will be highly appreicated.