Nowadays several banks are shelling out loans exclusively for the purpose renovation of or reconstruction of your house. In case, you are planning to add a couple of storeys, rooms are even a brand new extension to your existing house, then you need not pay the entire amount from your pocket. Take financial assistance from your banks. Loans taken for such purposes come under the category of housing loans. But, do these reason specific loans have extra terms and conditions? Of course not! Their rules and regulations are akin to a regular housing loan. What about the eligibility? Any person who is 21 years and above and has access to a regular source of income is eligible for these loans. In most of the cases the margin obligation hovers between 20 to 30 percent of the total expenditure. In other words your bank can bear at the most 80% of your selected purpose. The interest charges are similar to the interest rates of general home loan. However, it depends on the quantity of the borrowed amount, its tenure and the selected mode of interest i.e. either fixed or floating. As far as the tenure is concerned, these loans are available for short, medium and long tenures- extending up to 15 years. The repayment can be done in the form of equated monthly installments (EMI). In case of some banks the EMI repayment starts after 18 months of the allotted date. The processing charges ranges from 0-2 percent of the allocated loan amount that is payable upfront. However it’s advisable to avail such loans in festive season as during that time many banks nullify their processing fees. Fulfillment of some conditions is a pre requisite to avail such loans, for instance the property should legally belong to the loan applicant. A bank may also insist upon extra security considerations like the third party assurance. Generally, such clauses are implemented according to the policy of different banks. Moreover, before availing these loan options a borrower is required to submit the valuation certificate of the existing worth of the house. One is even required to deposit the affirmation certificate allotted by a government approved architect or a structural engineer that authenticates the condition and the life duration of the property. In certain cases banks insist that the property should be insured for its total value against the major natural or manmade disasters. The insurance should be in the name of the borrower as well as the bank. Besides, the regular documents, banks might ask for those pertaining to the ownership proof, estimated expenditure and its break-up along with the approved plan of prospective construction. So, the next time you are planning to give that extra oomph to your home, make sure that a bank loan is by your side. Such loans really come handy when you face the paucity. Now, don’t stop yourself from giving your house that flashy facelift. Hence, the bottom line is that the financial crunch won’t stop you anymore.