Renovating your home is something that you won’t do every other year, and it doesn’t matter if you live in a 2BHK apartment in a crowded city or surrounded by hills, a loan is the easiest way to get the funds needed to tackle this major expense. When you choose to make drastic renovations like structural changes, building a porch, expanding your home to include an activity room or redesigning your kitchen, you will have to take care of a host of costs.

So, consider taking aloan against the property for home renovation in India and compare offers from various lenders to find the most competitive loan against property interest rates. You can get a great offer on a home renovation loan by increasing your eligibility by implementing a few simple steps. Then, apply with lenders like Bajaj Finserv for a Loan Against Property to finance renovation. Use the Loan Against Property EMI calculator to understand the amount you would pay each month. Next, apply to avail Rs.3.5 crore along with a long repayment tenor of 20 years. You can even use the Flexi Loan facility to borrow money in parts from the total sanction. Pay interest on the amount you use, exercise the option to pay interest-only EMIs and repay the principal at the end of the tenor. This will help you manage your cash flow better.

So, get started by considering these 3 points that you can focus on to better your loan against property eligibility.

Maintain a Solid Credit Score

Your credit score represents your financial behaviour and patterns.On a scale of 300 to 900, a good credit score is 700 or greater. Lenders use your credit score to assess the risk involved in lending finance to you based on how you have managed credit and made payments in the past. If a lender feels you can repay a loan with ease without defaulting they will consider giving you a higher loan amount and offer you a better rate of interest too.

With a better rate of interest and an increased amount you can construct a modular kitchen or expand your living room and still have money left over to change the soft furnishings in your home!

Pay Attention to your Debt to Income RatioYour debt to income ratio compares how much you earn versus how much you owe. If a large portion of your income is going towards tackling debt, you’re said to have a poor debt to income ratio. Needless to say, this ratio should be as low as possible as this is one way in which lenders measure your capacity to repay a loan. If your DTI ratio is high, it indicates that currently a significant portion of your earnings are going towards tackling debt. Taking on more debt in such a situation may lead you to default, and hence is viewed as risky by your lender.

Also Read: Consolidate Festival Season Debt with Mortgage Loans

Use Investments to Clear Outstanding Debt

If you have outstanding dues that have accumulated despite your best efforts, clear this debt first. It will make repaying the home renovation loan easier, and also improve your credit score, and hence your eligibility and the amount that you can borrow. Use income from investments as well as increments or cash gifts to repay existing debt. Then, once your credit score shows improvement, apply for a loan against property for home renovation to get a higher amount on more flexible terms.

When you are looking to renovate or reconstruct your home with finance from a loan, look for a low loan against property interest rate and a high sanction. Paying attention to the aforementioned factors will help you ensure this. Then, submit the loan against property documents required to avail the loan.