According to Market Study Report, the global market for home improvement is set to grow at a CAGR of 4.5%. Global Market Insights, Inc reports that this market will be worth more than $1.1 Billion by 2025.
Developed countries like the US, China, Japan, etc. are the primary drivers of this market, followed by developing countries like India, Mexico, Indonesia, and Brazil.
In India, homeowners desire a house that stands out from the rest in their locality. So, renovation and improvement is something they opt for every 10 years or so.
It may be high time that you renovate your house - change the exterior or interior paint, add marble flooring, make extensions, or even construct a new floor. Opting for a Top up loan from Bajaj Finserv can help you with the funds if you have already availed a Home Loan from the NBFC.
Why opt for a top-up loan rather than a personal loan?
Personal loan is one of the options that you can opt for to avail funds for renovation. These loans can provide you with funds up to Rs. 25 Lakh. You also have to submit a few documents and fulfil a few eligibility criteria.
Opting for home loan top up, however, enables you to avoid the above. You avail a much higher amount; plus, don't have to provide the necessary documents and satisfy the eligibility criteria, since you are already a customer of the NBFC.
Top-up loan is a high-value personal loan, which you can use for any purpose. Its use is not restricted, unlike a home loan (which can only be used to purchase or construct a house).
I am not an existing customer of Bajaj Finserv. Will I be eligible for a top-up loan?
You will not be eligible for a home loan top-up if you are not an existing customer of the company. However, you can be eligible for the same if you transfer your home loan to the NBFC at lower rate of interest.
What is home loan balance transfer?
Home loan balance transfer is a facility offered by the majority of financial institutions. This feature empowers you to switch your existing loan to a lender offering lower home loan interest rates without any hassle.
Generally, borrowers avail this facility if their current lender is charging a high rate of interest. Transferring the home loan enables you to benefit from lower rate of interest, more affordable EMIs, longer/shorter tenors, and other features.
You can take advantage of home loan balance transfer facility from your existing lender and move the outstanding balance of your credit to Bajaj Finserv and avail their Top-up Loan.
Note that your existing lender will charge a processing fee on the outstanding balance, which usually comes with a ceiling.
How long does it take to transfer your home loan balance?
Transferring your home loan balance can take anywhere between 5 to 10 days. You only have to provide a few details online when moving your home loan to Bajaj Finserv.
The company also brings you pre-approved offers, which help you save time when availing financing by making the process sublime. Pre-approved offers are available on home loans, business loans, personal loans, and an array of other financial products. Take a look at your pre-approved offer by providing only your name and phone number.
How much can I avail with a top-up loan?
You can avail up to Rs. 50 Lakh with these loans. This amount will depend upon the outstanding balance of your existing home loan in case you are transferring it.
Using a home loan balance transfer calculator will help you know the top up loan you are eligible to receive. This calculator also tells you the amount you save and new EMI if you transfer your home loan.
You have to enter the following data to find the above -
• Existing lender
• Property location
• Loan starting year and month
• Sanctioned amount
• Existing rate of interest
• New home loan interest rate
Are there any income tax benefits on top-up loans?
Using a top-up loan for home renovation enables you to avail income tax exemptions of up to Rs. 30,000 under Section 24(b).
There is no ceiling for the deductions if you have rented out the house. Hence, you can claim the entire interest paid as exemption in such cases.
You need to ask a few questions if you are planning on renovating your living room. Similarly, make sure that you have all your queries cleared before you opt for a top up loan for home renovation.