Applying for a home renovation loan for home improvement projects is a good idea that depends on your needs and the rate of interest on offer. Interest rates of home improvement loans range between 10% and 27% depending on the borrower’s credit score, repayment capability and income. Such a type of personal loan with a competitive interest rate can be a smart option for your home remodelling project – as it does not require you to pledge any collateral to procure the loan amount.
How can a home improvement loan help?
The cost of home renovation is steep, considering today’s market. Hence, it makes sense to opt for home improvement loan to pay for the substantial expense, instead of breaking your savings. Here is how home improvement loan is beneficial to you –
- The home renovation adds value to your property
Even if you might not consider selling off your residential property at this moment, it is always profitable to add to its value. An economical way to do it is to opt for a personal loan. Utilise the funds to give your house a dream makeover. It will prove exceptionally useful at the time when the real estate prices are soaring high.
- A timely facelift is essential
Whether you intend to lease out your home or self-occupy it – timely maintenance is important. Renovating your property may include not just aesthetic improvements but also structural changes for revisions. Plus, it minimises instances of future repairs which is even costlier.
Where to obtain a home renovation loan?
You must shop around to find the most suitable loan facility as per your financial situation. You can compare between lenders online and settle on one that provides congruent loan terms. You can consider opting for a personal loan for home renovation from lenders like Bajaj Finserv that are customised for home repairing and remodelling.
Further, if you are an existing customer of this lender, you can also enjoy pre-approved benefits. These offers streamline the process of availing finances via quick loan processing and nominal paperwork requirements. They are applicable to personal loans, business loans, home loans and numerous other financial products. You can check your pre-approved offer by sharing a few necessary details like name and contact number.
Once you have gathered the information on what you qualify for this credit facility, pick an option that best suits your requirement. Also, ensure the personal loan documents required before applying for this credit from the preferred lender. Depending on your home facelift project, some lenders might even offer rebates on their deal. Plus, you could also obtain a personal loan at better rates; depending on the type of project it is and provided you possess a healthy credit rating.
Why choose a personal loan for a home makeover?
There are numerous benefits associated with obtaining a personal loan for home improvement like –
- Collateral-free loan
You do not need to pledge your assets to draw a hefty sum at affordable rates. Also, use an EMI calculator to check your affordability.
- The simple and quick application process
As these are collateral-free advances, home renovation loan approval is quick due to its easy-to-meet eligibility criteria and nominal paperwork requirements.
- No end-use restriction
When you avail a personal loan, you can utilise the funds for any purpose you require. You can bring out the aesthetics of your home by investing in furniture and décor as well.
For better planning and execution of your home makeover project, avoid the common home renovation mistakes. You can also use a home renovation loan calculator to prepare for your repayment in advance and ensure the EMI amount stays within your budget.