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Home Improvement

How to take a loan for home improvement

Usually you take a loan to buy a house or a flat. People also take loans for renovation of the house. Banks also provide loans to increase or repair the house.

If you also want to take a loan for the repair of the house, before starting the process, assess the amount that you earn. Banks only give loans according to that. Your ability to borrow depends on your ability to repay it.

If you have already taken a home loan, then you can take a loan according to its repair, decoration or maintenance. Home improvement loan can be taken for both new home and old one. In this, the person taking the loan has to calculate the estimated expenses and tell the lending institution.

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Many times, the lending bank also asks for information about work expenses from a contractor. This amount is released in the name of the contractor who works.

Some banks also issue top-up loans. It can be issued according to the value of the property. You can use it according to your need. In this, the customer gets a loan against the property. This loan can be taken for home furnishing, buying consumer goods, child’s education, family holidays or other purpose.

If you have taken a home loan, it is necessary to submit EMI on the due date. Sometimes there is an error in depositing EMI. This can happen for several reasons. You may not have enough money left in your account on the due date. It may also be that you forgot to put the EMI installment in your bank account. There is a huge loss due to default in EMI deposit due to any reason. One can understand this with an example.

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The monthly installment of home loan of Suresh Tiwari, who works in a private firm, bounced. They did not get salary on time, due to which they could not fill the monthly installment of the house. Generally, there are various types of charges if the loan is not deposited on time. The bank where you have an account imposes a charge, while the lending financial institution also imposes a penalty. Naveen Kukreja, CEO of Paisa Bazaar. com, said, “Private banks levy stricter penalties when the monthly installment of the loan bounces.”

If you have taken a loan from a government bank and the loan installment is also going through the account of the government bank, then you may have to pay a penalty of up to 500 rupees when a monthly installment bounces. If the financial institution giving the loan is in the private sector and your bank account is also in a private bank, then the penalty amount can go up to Rs 1000 if a installment bounces.

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Banks assess the ability of the customer to repay the loan before giving a loan. Even after this, if you are unable to repay the loan due to any financial problem, then you can take these steps: * Once the first installment bounces, go to the lending bank. Share your problem with his manager.

* Once the first installment bounces, go to the lending bank. Share your problem with his manager. * Generally, the manager advises to pay the next installment carefully. If your problem is big then talk about holding monthly installments for a few months.

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The loan installment date is usually at the beginning of the month, it is called advance EMI. * If you pay your monthly installments at the end of the month, it is called arrear EMI. * For CIBIL score, the bank manager sends the report after installment bounce for three months. If your loan has bounced less than this, request the bank manager not to send negative report in CIBIL.

* Once the CIBIL report is bad, you may face a big problem in getting a loan, credit card etc. in future.

Take precautions before taking a loan Do not sign any bank document without reading or understanding it.

Do not start the process without knowing the loan policy and necessary documents. If you have taken a loan for the house, the bank will have to repay the loan even if the builder has not given the house on time.

Be thoughtful about someone’s guarantee for a loan. After becoming the guarantor of someone, you also have the responsibility to repay that loan. Before signing the ECS form, check when the transfer is to begin and how many installments are to be sent. Check your signature on the check given to the bank. You will also have to pay a penalty for not being signed, not received, and returning the check.

If you have done a house deal with a private builder, then before taking a loan, please check the builder’s land documents. If there is any deficiency, the bank can close the loan in between and you have to pay the amount given by the bank.

Don’t bother getting notice

If you have received any notice from the bank about not repaying the loan or monthly installment bounce then do not worry. State Bank of India AGM MK Khurana said, ‘Bank officials want to understand your intention. If you are unable to repay the monthly installment of the loan due to any real problem, then after getting notice from the bank, you have 60 days to repay the loan.

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If you do not repay the loan even within this period, the bank will send you a new notice. The deadline for this final notice will be 30 days. Even after this, if you do not repay the loan, then the bank can start the process of auctioning the property under the SARFAESI Act.

You can ask a bank officer

On getting the notice of not repaying the loan from the bank, you can meet the officer and ask about it and raise objections. The bank officer will have to answer your question within seven days. If the officer rejects your objection, then he has to give the exact reason
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