Here are 5 key benefits of a home renovation loan
A home is more than just a roof over your head—it’s a reflection of your taste, style, and personality. But there comes a time when you might need a home renovation. Maybe your family has outgrown the space, or you are turning a room into the home office, or your house has started showing signs of wear and tear. Whatever the reason, you can redecorate your home and align it with your current needs and preferences with house renovations. However, such renovations can be expensive, so, instead of taking unnecessary financial risks, you can opt for a personal loan to renovate your home.
A personal loan for home renovation can help you make the changes you need to design the home of your dreams. You can borrow the money needed for your home renovation and repay the loan amount in affordable Equated Monthly Instalments (EMIs). You can finance cosmetic changes like painting or flooring or more extensive renovations like remodelling your kitchen. Most importantly, you can make your home more comfortable for yourself and your family.
Here are some more benefits of a personal loan for home improvement:
- Minimal documentation and instant approval
Today, most lenders have an easy personal loan apply online process with minimal documentation and instant approval in minutes, depending upon your selected lender and your credit profile. Simply apply online through the lender’s website and provide the necessary identity proof and income documents such as PAN card, Aadhaar card, driving licence, latest bank statements, etc. However, make sure you meet all the eligibility criteria to get speedy approval.
- No restriction on the end-use
You can use the funds from the personal loan for home improvement for any purpose whether it is to renovate, remodel, repair, or upgrade your existing house. Moreover, you may also use it to purchase furniture and gadgets such as geysers, fans, air conditioners, etc.
- No need for collateral
A personal loan for renovation is offered as an unsecured loan, so, you don’t have to put your home or other assets at risk if there are defaults in the loan repayment. Of course, there are still consequences for missing or failing to make EMIs, but at least you won’t have to worry about risking your property.
- Desired loan amount
The loan amount you may qualify for depends on your credit score, income, age, employment history, and repayment capacity. The maximum limit can vary among lenders, but most reputed lenders also offer amounts up to Rs 50 lakh with flexible EMI options to borrowers with a decent income and a good credit score. You can also use a personal loan EMI calculator to compare interest rates of different lenders and choose the one with affordable monthly personal loan payments.
- Easy repayment options
The repayment tenure of a personal loan usually ranges from 12 months to 60 months giving borrowers the ability to budget their repayments accordingly. If you want to clear your loan quickly, you can go for a short loan tenure with higher EMIs. Alternatively, if you need more time to repay the loan, you can choose a longer repayment period.
With a personal loan, you can customise your home as per your needs without putting a strain on your finances. However, it is recommended to borrow a realistic amount that you can comfortably repay and compare different lenders on parameters like interest rate, customer service, loan approval process, etc.