What is the Difference Between a Home Renovation Loan and Home Extension?

What is the Difference Between a Home Renovation Loan and Home Extension?

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Your home is a perfect representation of your personality. Because of this, your home requires ongoing improvements to keep up with the changing times. It costs a lot of money to make improvements to your home, whether it’s to modify the way it looks or make new room for your expanding family. For your unique house purposes, financial institutions offer home loans. A home renovation loanor a home extension loan can come to your aid. Today, you can easily avail this loan through a loan app.

Home improvement can include remodelling, internal and external repairs, painting, and even more extensive construction work, such as adding a floor or a washroom. Such home improvements can be very costly. But with an instant loan, you can easily take care of these expenses.

You can apply for an instant personal loan to meet home improvement or home extension expenses. Such loans can be availed by downloading the lender’s loan app or applying online. In such cases, the documents required to apply for an instant loan online are minimal, and the process is simple.

Difference Between Home Renovation Loan and Home Improvement Loan

If you want to expand your home, a home extension loan is the best option. But if you want to carry out extensive renovation work, then a home renovation loan will serve you best. However, before choosing between a home renovation loan or a home extension loan, you must know the differences.

What is a loan for house improvements?

Choosing a home renovation loan to improve your home is the best move if you want your property to reflect your taste and individuality. This loan will assist you in giving your house a new look. You can remodel your kitchen, change the paint, buy new lighting or get your interiors done. A home renovation loan can serve you well.

Advantages of loans for home renovation

1. Low-interest rates

Loans for home renovations have low, fixed interest rates. This ensures that the loan you are availing is affordable and the total interest payout is less. If you have a good credit score and a stable income, then you may further negotiate this interest rate with your chosen lender.

2. Easy loan procedure

A home improvement loan can be obtained without the trouble of filing numerous documents. You can apply for an instant loan online through a simple process. A few essential documents are all you need to apply for this loan.

3. No Collateral

Most lenders don’t require any security or collateral for loans for home renovations. This makes this loan overly simple and safe. Your property is safe, even if you default on your loan.

4. One-stop shop

Today, it is simpler than ever to obtain loans for home renovation. There are many lenders that offer instant loans for home improvements, including loan apps, banks and NBFCs.You need to do your market research and apply with the one that gives you the best offer. However, make sure that you use a reliable and trustworthy lender.

5. Income tax returns

Under section 24 of income tax laws, you can avail a deduction of up to Rs.

What is a home extension loan?

At times, your home may feel small to accommodate your growing family. As your kids grow or new members join in, you might feel the need for more space in your home. In such cases, a home extension loan can serve you best. Home extension loans are viewed as a housing option that gives you the financial resources to cover the extension’s expenses.

Advantages of loans for home extensions

1. No need to shift

Moving to a new house in a different neighbourhood can be difficult after you have spent so many years in your current house. In addition to that, there is an emotional attachment and comfort that we build in the house we live in. With a home extension loan, you can easily take care of your space requirements.

2. Simple to obtain

The ease of application and approval for home extension loans is a crucial advantage. Lenders only need minimal paperwork.The entire application procedure may be done online. Using a loan app, you can apply for a personal loan to meet your home extention expenses.

3. Lengthy tenure

Home extension loans are similar to housing loans.Just like home loans, you get a long loan tenure for these loans. Thus, if you want to avail a loan for a long period to ease your EMI repayments, you can avail a home extention loan.

4. Tax returns

Youcan apply for tax returns for your home extension loan. Under section 80 EE you can avail income tax benefits on the interest portion of the home improvement or home extension loan.

Conclusion

Your home should always be a haven of calm and tranquillity. Maintaining that calm requires regular restoration and extension when necessary. There are several similarities between loans for home extensions and home improvements. The main distinction is that the latter can be used for additional construction while the former can only be used for renovation.

Personal loans can be availed for home extensions and home renovations. Such loans are available as instant loan, which needs minimal documentation and simple procedure. You can also apply for these loans through a loan app.

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