One must be familiar with the saying- “Change is the only constant in life.” And to be honest, who doesn’t want a change for the better?
Most of us have dreamt of living in a lavish and beautiful home at some point in our lives. A beautifully curated home gives a vibe of positivity for sure. Needless to say, it packs in a great deal of joy and prosperity.
But what comes between us and our dreams is money. Harsh truth!
Let’s face it, arranging funds for renovating a home is not a piece of cake. Moreover, home renovation is pretty expensive nowadays. It can easily drain our entire life savings.
This is where a home renovation loan comes into play. So, the desire to live in your dream home can now be fulfilled without busting the bank. Yes, you read that right. Keep scrolling to know more…
What is a Home Renovation Loan?
It is made available if anyone wants to renovate or improve their home. A renovation loan helps with new flooring, painting, tiling, modernising, renovating, fixing problems, and even expanding the property.
They are a popular type of personal loan. It can be offered by banks, NBFCs, and HFCs. Moreover, a home renovation loan has no end-use restrictions. One may either choose to renovate, improve, or extend house as per their requirements.
Personal Loan for Home Improvement
As we already know, this aids in financing costs related to home renovation. The interest rate of a personal loan for home renovation generally starts at 10.49% annually.
However, few PSU banks can provide with loans with even less interest rates. One can also find lenders offering longer terms than 5 years.
The key benefit of personal loans for a home renovation is quick approval and easy disbursal. These are typically processed and disbursed within 2 to 7 business days.
A personal loan’s greatest benefit is its flexibility. One can literally use it to do anything to their home. One can even opt for applying for a personal loan before you begin renovating the house.
On the other hand, applying for a renovation loan is also possible once the work has already started.
Furthermore, personal loans have competitive interest rates. Numerous lenders also provide pre-approved rapid loans to selected clients depending on their credit histories.
Personal loans are pre-approved. So, they can be disbursed shortly after applying for credit.
Benefits of Home Improvement Loans
Now taking a personal loan for home improvement has a ton of benefits:
Flexibility of usage
A personal loan is a very flexible option. It has no restrictions, unlike a vehicle or mortgage loan. Also, it can be used for any purpose.
A personal loan is a quick option to escape a current financial crisis one is experiencing as a result of the house improvement.
Quick Disbursal –
Pre-approval is often quick. To receive a personal loan quickly, one must meet the qualifying requirements. A strong credit score is unquestionably advantageous. Disbursal typically takes 24 to 72 hours, depending on the bank or lender, although it might take longer.
It is therefore the best option when it comes to a home renovation. If one is already a client of the bank they are applying loan for, immediate online approval is also possible.
No Security or Collateral Necessary
One can obtain a personal loan without having to put up any security, such as a house or car. Based on creditworthiness, which is determined by factors like credit score, income, payback history, and employer reputation, will determine if the loan is sanctioned.
Personal loans often have flexible terms between 12 to 60 months.
It is possible to apply for a personal loan offline or online with minimum documents. The important documents that are needed include proof of identity, proof of income, and proof of address.
Eligibility for Personal Loan for Home Renovation
To qualify for a loan, a few requirements are needed to be met. Let’s have a look at the eligibility criteria for obtaining a personal loan for house improvements:
- One must be at least 21 years of age.
- Borrower have to be an Indian Resident to apply for a personal loan.
- He/she should work for an MNC, a private firm, or a publicly traded corporation.
Use a personal loan eligibility calculator to determine the loan amount needed to make home improvements. It will display the total amount you are allowed to borrow.
This will further aid to apply for the correct amount without having your loan request denied.
Home Improvement Loans Interest Rates & Charges
One should always consider the interest rates and fees associated with the loan when applying for a home improvement loan.
Personal loans often have interest rates between 10% and 15% per year. Processing fees also range between 2 and 3 percent of the loan amount.
Loan Amount for larger loans, banks often provide lower interest rates.
One’s ability to repay the loan is significantly influenced by the monthly salary. Loans are made available to people with greater salaries at reduced interest rates.
Relationship with the Bank
A good relationship with the bank can provide attractive interest rates, offers, and fees.
Lenders evaluate the credit history before approving a loan. They make sure that one can afford to pay it back.
If anyone wants to renovate their home, getting a personal loan is the best bet. Due to the escalating costs of both labour and the materials needed for remodelling, home improvement is going to be expensive. So, be wise in comparing the best rates to get the best deal!
If you are looking for personal loans online for a home renovation feel free to check Piramal Finance for the lowest interest rates and quick approval.