Published by f1rst on November 28, 2012 | Blog

You can apply for a home renovation loan in order to get your residential property repaired or renovated. You can obtain such loans for civil work that covers plumbing, painting the house or repairing the kitchen area in the house. You are not allowed to use this money on the furniture, as it does not fall under the category of civil work.

Initially, you have to obtain a quote from an eligible civil contractor, engineer, or architect to get the renovation loan approved. You should then submit this quotation to the bank to get it approved. Once the technical department of the bank agrees with the quotation, the bank dispatches the loan amount.

The bank provides you with a sanction limit for renovation loans that ranges around 85% of the property cost. The home loan amount is also included in this percentage. A few banks may approve up to 100% of the property cost in certain circumstances.

Your property documents need to be correct and complete for the banks to sanction you the renovation loans. The process cannot be complete without these papers. In such a situation, the person with an already active housing loan from a specific bank or institution will have to choose a renovation loan from the same bank.