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What is the meaning of foreclosure? How can I foreclose my Home Improvement Loan?
Foreclosure is the prepayment or part-payment of a housing loan, home improvement loan, two-wheeler loan, etc. Banks that provide this facility charge interest based on reducing balance. Interest is charged only on the outstanding principal amount.
 However, loan aggregators help you with the best repayment options for a good 5 years. Explore Buddy Loan in order to reap more benefit, especially for a Home Improvement Loan.

Will EMI’s change after foreclosure?
The EMI amount will not change. But the number of EMIs will change depending on the tenure. After prepayment is made, interest component and principal component on the outstanding debt changes. A new rate of interest is computed. Although the EMI will not change, the benefit is distributed to the number of EMIs paid.
Foreclosure of Home Improvement Loan
·         Just like any other loan, even a home renovation loan can be part-paid or pre-closed.
·         Apply. Download the application form. Enter relevant details as required by the application. Submit the filled and signed application by post to the bank’s head office. Alternatively, submit an online application.
·         Once the foreclosure amount is received, the bank re-calibrates the interest amount on the outstanding principal. The new EMI amount or the number of EMIs to be paid is communicated by mail and also informed by a bank representative over the phone.
Foreclosure charges are in the range of 2% to 4%.
If the full loan is paid before its tenure, then a no-dues certificate has to be obtained from the bank. The bank will mandatorily provide this certificate. Once the certificate is received, update your credit score by submitting an online request on the credit bureau site.
Benefits of a home refurbishment loan
•          Instantly disbursed. Minimal paperwork. Hassle-free transparent process.
•          Nominal interest rates. It can be foreclosed. Some banks offer interest rates that are comparable to home loan rates.
•          Although a type of personal loan, its purpose tends to the home finance sector. Hence, home loan providers offer this loan. Existing housing finance or construction loan holders can avail this loan from the same bank.
•          Primarily, home improvement loans are necessary to maintain the safety, cleanliness, and function of the home.
•          There is no restriction on the way the money can be used for a home repair loan. It can be used in a variety of ways like painting, furnishing, panelling, flooring, tiling, etc. It is advisable not to use this loan amount for construction. A better option would be to take a construction loan.
Conclusion
Home furnishing loans are wonderful loan products to stop worrying and start living in style in one’s home without compromising on comfort.

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