Having a beautiful and most functional home is necessary now that we all spend most of our time in our homes. However, keeping the house in tip-top shape needs periodic maintenance. While maintenance may keep the home as functional as possible, renovation brings the best of both worlds: beautification and functionality.
We all know that home renovations require a lot of money and can be costly, and you may not have the budget for it. In such a case, it is best to look out for the personal loans or home renovation loans.
Home renovation loans are offered to repair/renovate/alter the structure of your existing property. These often also include the cost of furniture and appliances, if that’s just what you need to improve the functionality of your home. There are various reasons why borrowers need to apply for the personal loan for home renovation loan. Here are some listed reasons why people opt for it.
Reasons why to Opt for Personal Loan:
- Quick processing
While planning for home renovation, we all want to start the renovation work as quickly as possible. The documentation required for it is minimal and hassle-free. Only essential documentation such as identity/income proof, photographs, etc., is needed. If you are an existing customer of the finance company (for example, if you have taken a personal loan from the lender), the documentation becomes simpler, and the amount disbursement is quicker. With the launch of online portals and apps, getting loans has become relatively easy.
- Loan Eligibility Criteria
Home renovation loans are offered to Indian citizens with different income backgrounds. If you want to get approval on your loan application you must have to fulfill the eligibility criteria for it. For example, some of the NBFCs, a non-banking financial company, offer home renovation loans with monthly income as low as Rs 25,000 for residents aged 21 to 60 years. For residents living in Delhi and Mumbai, the minimum income to avail of a home renovation loan should be Rs 25,000, as per the company’s website..
- Flexible interest rates
Like any other loan, the personal loan for home renovation also comes with a flexible interest rate. The interest rate can be lower if the borrower’s loan repayment ability is good (that is, if you have a steady source of income). The loan-repayment ability is ascertained by checking credit score, employment history, monthly income and the existing relationship with the financier. You can also check the probable interest amount levied on your loan by using the personal loan interest calculator available on trusted, reputed company websites. Every lender’s website has a loan EMI calculator on their website.
- No limitation on loan utilisation
Personal loans or a home renovation loan are flexible. It puts no bar on what and how you spend the loan amount. This will enable you to spend the loan amount according to your house needs. For example, if you wish to change up the furniture and get new designs, that are more functional for your growing family, then personal loan for home renovation would be the most suitable for you. It provides an open-ended personal loan, and you can use it as per your requirement.
Must Read: Small Home Renovation Ideas To Save Money
- Pay at your own pace
Personal loans and home renovation loans benefit you from paying in parts in the form of an easy monthly instalment (EMI). This takes away the stress of arranging all the money needed for the renovation at once if you were to finance this yourself. Taking a loan also avoids liquidation of your savings or investments.
Now the dream home isn’t far away. Get going!