Documentation for a renovation loan: 7 Things financiers require

Documentation for a renovation loan is simple.

Other than income and identity proof, financiers require:

• Copy of property papers of
• the property to be mortgaged
• Copy of approved drawings of proposed renovation
• Detailed cost estimate
• from an architect or engineer for the work to be undertaken
• Statutory permissions in
• the case of home extension
• Taxation

For rented properties, the interest payable on home improvement loans is deductible from the annual value (i.e. the higher of the actual rent paid and the notional rent fixed by the municipality). Further, 30 percent of the annual value is deductible for repairs and renovations, regardless of whether the repairs and renovations have actually been carried out. For self-occupied property, interest payable to the extent of Rs 30,000 is deductible from taxable income.