Many still confuse a house repair personal loan with a home loan. Both will help you in getting your dream home setup just like how you visualize it. But a home loan is a secured form of credit. A sum of amount you receive for purchasing your house brand new with funds from a bank.
A personal loan for house repair is different. The funds can be applied from a digital lending platform such as Loan Singh. Along with being a superb solution for giving your house a well-deserved upgrade, Loan Singh is the perfect place for quick house repair funds.
House Repair Personal Loan as an Option
A house repair personal loan is a type of unsecured credit that is generally availed to meet urgent financial needs with regards to improving the structure of your house, compound, yard or gateway. Being an unsecured credit, a personal loan requires no collateral or mortgage. With no collateral, it is hard for Loan Singh to know about the borrower’s repayment capacity and his/her past defaults. Loan Singh does not meet the borrower face-to-face, like banks do. Everything from loan application to amount disbursement is done online. To mitigate the prospect of risk, Loan Singh assesses your creditworthiness using your credit report. If you have a good credit history, you have a better chance of avoiding a loan rejection. Your credit score indicates how prompt you have been with your past credit obligations.
Availing a personal loan via Loan Singh is advantageous because there is minimal paperwork involved. So, no time is wasted in cross verifying any paperwork. The personal loan amount, along with interest rate, is calculated for the entire tenure, and in case you want to clear-off the loan before tenure completion, no prepayment penalty is levied by Loan Singh.
The purposes for availing a personal loan are aplenty. Some of them are
- Overseas travel
- Celebration loan
- Gadget purchase
- Medical expenses
- Second-hand vehicle
- Online shopping
- Job relocation
- Home improvement
No collateral means you can apply for a personal loan for the above purposes and more; even if you do not own any assets. No loan guarantor is needed. No storage needed for piles of paperwork.
You are a salaried individual and chances are that your salary will continue to rise in the forthcoming months and years. Use this impetus to plan your repayments to avoid any delay in repayments and defaults.
Loan Singh Eligibility Criteria
Just like in banks, there is a set of eligibility criteria at Loan Singh as well; albeit a shorter one.
Indian and salaried – You must be an Indian citizen and earning a minimum of Rs.15000 per month.
Good credit score – Have a good credit bureau score to help Loan Singh gauge your repayment capabilities. If you have no credit history, then you must be salaried for at least 3 months. CIBIL, Experian, etc. are assessed.
Age – You must be at least 21 years of age.
Loan Singh Application Process
If you find yourself fitting Loan Singh’s criteria, log on to www.loansingh.com and apply for an online personal loan. You will need to keep your Aadhaar, PAN and bank details handy. Here is how the process goes.
Get started page – Select ‘PERSONAL LOAN’ from the dropdown and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID, and corporate email ID
Profile page – Fill in your name, gender, father’s name, number of dependents, and PAN details. We use your PAN Card Number to check your Credit Score.
Address page – Choose your type of residence, and mention your street address, city, state and pin code.
Job profile page – Mention your current designation, total work experience, company name, highest qualification, last institution attended, and monthly salary.
Financials page – Upload your latest 6 months bank statement (in PDF format) either from your computer, GMail account or net-banking account directly. Our net-banking partner is ISO 27001 (2013 standard) certified & provides services to multiple banks, as well.
Auto debit page – Provide permissions to your bank name, account number and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI payments.
House Repair Personal Loan Tax Benefit
We saw how a house repair personal loan can be the right choice when needing emergency funds to get your house back in shape. As an added advantage, a house repair personal loan is eligible for tax exemption. Tax exemptions are applicable in our country under which a salaried individual can claim deductions to reduce his/her taxable income. These exemptions are housed under sections 80C, 80U, 80F, 80G, 80EC and 80H. These exemptions include one for house property, payment of principal amount and also for NRIs purchasing property.
Not many salaried individuals know that you can get tax benefits on house repair personal loan. But this again depends on the final use of your approved loan amount. When you avail a personal for say construction or repair of your house, you can claim certain personal loan tax benefits. The government allows tax deductions on personal loans taken to repair your house. As per Income Tax laws, not all of your personal loan repayments will be considered for exemption. You will not get a deduction for the principal amount of the personal loan. Only the interest paid on the loan can be utilized for tax deduction. You need to provide enough proofs to tax personnel about using the money for actually the house repair. Hence, it is important you keep all the documented proof with you. Also maintain the bills of the carpenter, laborers, utility bill, paint, equipment etc. These receipts and bills will help you to claim an exemption.