It is common to prepare a home improvement plan before any festivity or wedding. While many prefer preparing a plan as per their budget or savings, there are times when they may fall short of some funds. Here’s where you can consider opting for a home renovation loan, a variant of a personal loan. Using this loan, you effectively can manage all your major or minor financial mismatches during décor change, home painting, kitchen remodelling and other customised implementations.
Like personal loans, a home renovation loan comes with similar features. A few of the crucial features include no need for collateral, minimal documentation, and instant loan proceeds disbursal. Read on to be aware of some crucial benefits before you hit on the home improvement personal loan apply option –
Provision of higher loan proceeds without the need for pledging any security –
You can avail a loan proceeds of usually up to Rs 40 lakh for home renovation needs. You can use the borrowed amount for distinct home purchases such as electronics, decorative items, and other products to revamp your home.
As the loan is unsecured, you do not need to pledge any security. Lenders give approval to your home renovation loan based on your income, credit profile, previous repayment behaviour and various other parameters.
Fast processing –
Personal loan for home renovation in most scenarios is opted for if there are any upcoming events. Lenders are aware of your urgency and thus often tend to offer the loan proceeds as early as possible. In the case of a regular personal loan, you may receive the loan proceeds within two to seven days. However, in the case of a pre-approved personal loan, you may get the proceeds on the same day of application without the need for providing any documents.
Flexible repayment facility –
A home renovation loan does not require you to make any lumpsum repayments like in the case of an overdraft facility. Like any retail loan, a personal loan for home renovation also allows you to repay your borrowed proceeds in EMI form over a span of between one and five years. The availability of a repayment tenure of up to five years allows you to plan your EMI well through an online personal loan EMI calculator as per your affordability.
Competitive rate of interest –
The home renovation interest rate is determined after reviewing your credit score. If you hold a higher score of over 750, then you may be offered a lower rate of interest on the loan and vice versa. Currently, the rate on personal loans usually starts from 10.99 per cent per annum. So, to be eligible for the lowest interest rate, ensure to maintain a good credit score. Note that availing a lower rate on a loan can allow you to reduce your overall loan burden.
Ending note
From the above-mentioned benefits, it must be clear that a personal loan for home improvement often comes as a saviour to rescue you out of financial crunches. However, before you zero in on any lender, ensure to use an online EMI calculator to compute the preferred EMI, tenure, and interest rate as per your potential to avoid any financial burden in the future.
