What Is a Home Improvement Mortgage?

Personal housing renovation loans refer to RMB loans made by banks to the residents for the decoration of their own homes using credit funds to pay for the construction of home decoration and maintenance projects, related decoration materials, and kitchen and bathroom equipment.

Home improvement loan

Personal housing renovation loans refer to RMB loans made by banks to the residents for the decoration of their own homes using credit funds to pay for the construction of home decoration and maintenance projects, related decoration materials, and kitchen and bathroom equipment.

Chinese name

Home improvement loan

Distribution crowd

People with stable and continuous wage income

Suitable

Chinese citizens with complete civil conduct

Features

Loan term up to 8 years

Home improvement loans, also known as personal micro-loans, are specifically issued for people who have a steady and continuous wage income. They use personal monthly wage income as the basis for determining the loan amount and are used for

For the application of a house renovation loan, the loan amount does not exceed 80% of the total value of the renovation contract; the loan term generally does not exceed 5 years. If the personal work income is relatively stable and reliable, you can apply for a loan through a personal loan or a third-party guarantee, and the bank will determine the loan amount according to the credit rating of the borrower and guarantor. When applying for a house renovation loan, proof of loan purpose must be provided: for example, providing house renovation design and applying to a bank. In addition, it should be reminded that the total real estate expenditure of the family must not exceed 50% of the household income.

Specifically, individuals applying for home improvement loans should meet the following requirements:

To apply for a personal home improvement loan, the borrower should be a natural person with full civil capacity. In addition, the borrower should meet the following requirements:

First, have permanent resident registration or valid residence status in cities and towns ^[1]

Chinese citizens who are at least 18 years old and under 60 years of age and have full capacity for civil conduct.

Loan quota-approved based on the borrower's ability to repay, guarantee status and funding requirements.

Loan term-The loan term can be up to 8 years.

Loan interest rates-floating within the range of loan interest rates set by the People's Bank of China.

Processing speed-loan approval is generally completed within 1-3 working days.

Processing Fees-Banks do not charge fees during loan processing.

There are various guarantee methods-various guarantee methods such as mortgage, pledge and guarantee can be adopted.

Encourage and guide financial institutions to increase innovation in consumer credit products. In 2006, CITIC Bank and Bank of China launched personal housing loans combining fixed interest rates and floating interest rates. Agricultural Bank of China Guangdong Branch, China Everbright Bank, and China Merchants Bank successively introduced fixed rate housing loans and mixed interest rate loans. "And other consumer loan products. Increased investment in housing decoration loans and large durable consumer goods loans. The housing decoration loans in the whole year increased by 7.1 billion yuan, and large durable consumer goods loans increased by 727 million yuan, which strongly stimulated the rapid growth of related consumer markets. ^[2]

The decoration loan introduced by Lirong.com has relatively easy conditions for applicants and the threshold is relatively low. Applications can be made with a monthly income of more than 2000. There is no high requirement for guarantees, as long as the real estate certificate is used as collateral, you can apply for it. And in terms of interest, Lirong.com has lower interest rates than ICBC. According to their economic situation, it is fully within the tolerance range. In addition, Lirong.com has very fast and convenient procedures. As long as the necessary documents are provided, it can be processed as soon as possible. Applying online can save a lot of time. ^[3]

Business outlets should check whether the information submitted by customers is complete, whether the original and the copy are consistent, and fill out the "Individual Consumer Credit Material List". The original will be returned to the loan applicant after the current review.

1.Application

(1) Having permanent residence in a city or valid residence status;

(2) A certificate of real estate right or a certificate issued by the borrower of the housing property right to own the right to use the house; if the property right of the house you want to renovate is your own, you must have a property right certificate. The unit issued proof that you have the right to use.

(3) Have a stable career and income, good credit, and the ability to repay the principal and interest of the loan on schedule.

(1) Original and photocopy of legal identity document (resident identity card, household register or other valid residence permit);

(2) Proof of property right or right to use the house with the name of the borrower;

(3) Unit-owned economy

(1) Personal housing renovation loans are loans issued by banks to borrowers for their own housing renovation. The housing decoration mentioned here refers to the engineering activities of using the decoration materials to modify and process the housing. This means that the property must be its own.

(2) The special requirements in the decoration loan are: there must be a house decoration contract, a decoration estimate and related materials signed by the decoration company approved by the relevant department; some banks also require the owner to have at least 30% of the total decoration budget Own funds and invested in the project construction before using the loan.

(3) Personal consumption loans are generally not allowed to withdraw cash in accordance with bank regulations. The bank will deposit the money into the account of the decoration company.

(4) The term of the loan generally does not exceed 5 years