Often when any festivity or wedding approaches, you tend to design a home renovation plan. While you may fund most of the expenses through your savings, there are times you may be short of funds in case of any major overhaul. This is where home renovation loan, a kind of personal loan, comes in handy. With this loan, you can manage all your minor or major financial needs like kitchen remodeling, home painting, décor change, and other personalized implementation with ease. Like a personal loan, it is a collateral free loan, with minimal documentation and quick disbursal features. However, unlike personal loan, which can be used for any purpose, home renovation loan must be used for home renovation or redesigning only.
To be aware about some major benefits of this personal loan for home improvement, read on.
- Availability of higher loan amount without any collateral requirement
Many of the popular lenders provide up to Rs 25 lakh loan proceeds for home renovation purpose. You can use the proceeds to purchase various electronics for your home like washing machine, AC, TV, etc., as well as give your home a complete makeover. As this loan is unsecured in nature, they do not require any collateral. Lenders approve home renovation loans depending upon your credit profile, income, past repayment behavior and other factors. Thus, you do not require blocking your assets to get this loan, which keeps your investments completely free for future use.
- Quick processing
Home renovation in most cases is done if there is any upcoming special event. Lenders do understand your urgency and thus tend to disburse your home renovation loan at the earliest. Also, many provide this loan in pre-approved form, which is based upon your credit score and takes just a day to get disbursed.
- Flexible repayment option
Home renovation loans do not need lump sum repayments i.e., you can repay in the form of EMIs. These loans come with a loan tenure that ranges anywhere between 1 year and 5 years. This permits you to plan out your EMI well using the personal loan calculator according to your cash inflows and repayment capacity.
- Competitive interest rates
Credit score is one of the crucial parameters that decides your home renovation rate. Higher score of 750 and above means lower interest rate for you and vice versa. Besides, you must also remember rates vary from lender to lender, which might range anywhere between 10.25 % and 24 % p.a. In other words, the interest rate available to you by a specific lender may not be the same if you approach another lender. Thus, it is necessary to consider multiple lenders using the online financial platforms to get a suitable rate as per your preference.
With the above listed advantages on offer, choosing a personal loan for home renovation can be your savior in times of money crunch. However, you must hit on the personal loan apply option once you have factored your overall amount requirement so that you avail just the amount you need. This is because loans are obligation that must be repaid by the due date with interest. Failure to repay negatively impacts your credit score, which pulls down your eligibility to avail other credit options in future. Thus, always take the help of personal loan EMI calculator to understand your optimal EMI as per your repayment capacity.