Often, upgrading homes or conducting necessary repairs can be considered as a favorable investment to undertake. It is because these additional expenses not only increase residential comfort but also enhance the property’s resale value. However, property owners often find these renovation projects expensive and thus, need to raise substantial funds.
Financial institutions thus bring customized loans for home improvement to help house owners fulfill their funding needs. A home renovation loan is a type of unsecured personal loan that individuals can obtain without mortgaging any collateral. The absence of any collateral thus simplifies the loan disbursal process, and owners can initiate their reconstruction projects right away.
Following are some vital aspects of house improvement loans –
Top features of home renovation loan
Depending on the reconstruction required, such as kitchen modulation, bedroom extension, and furniture alterations, the expenditure on home projects can be considerably expensive. However, with the help of a home improvement loan, individuals can acquire funds of up to Rs.25 lakh.
Thus, after deciding on the improvements required, they can estimate the total cost and apply for it online.
Flexible tenures for repayment
Indian financial institutions facilitate borrowers with multiple repayment tenures for personal loans. Based on the lender, individuals can pick a tenure of up to 60 months as per their financial convenience.
They can utilize EMI to make a wise decision regarding tenure selection. Nevertheless, when choosing a tenure, one should remember that although the EMIs become affordable with longer tenures, they accrue high interests and increase the overall cost of the loan.
Repayment in easy EMIs
Also, borrowers can repay their loan liability in easy EMIs over the tenure selected. As these monthly pay-outs are fixed, individuals can plan their finances before availing the loan and allocate funds towards repayment conveniently.
Simple eligibility and document requirements
A home improvement loan does not involve complicated qualification measures and documentation. Applicants with a strong credit profile such as a credit score of 750 and stable employment are eligible to apply for this advanced facility. Moreover, some necessary documents like KYC, salary slips, financial statements, etc. are required to process the loan and disburse.
With this information, now take a look at the process to apply for the advance for home improvement.
Affordable rates of interest
Furthermore, based on the lender selected, borrowers can also find competitive home improvement loans as well as you can avail interest rates on personal loan. They need to compare all available options to pick the most attractive rate. While analyzing the loan options, they must remember that a marginal difference in interest rates can save them a sizeable amount from the total repayment liability.
How to apply for a home improvement loan?
Here is a step-by-step guide to applying for a personal loan for home renovation –
Fill in the online application form
As a first step, individuals need to fill in the loan application form at their preferred lender’s official website. They would require filling in personal, employment, and financial details in the form. While filling in this form, individuals should carefully put all correct details for faster processing.
Choose an advance amount
Applicants can proceed to select a suitable amount that they wish to avail of and a tenure within which they can repay the total outstanding. So, individuals must choose an amount that not only covers the entire home improvement expenses but is also affordably repayable by the stipulated time.
Complete document submission
Before sanctioning the loan, financiers ask for documents to verify borrowers’ qualifications for this credit facility. Depending on the financial institution, individuals can either upload the required documents or submit hard copies to a representative.
Receive the funds
After successful verification, the loan amount can be approved instantly, and applicants can receive the amount shortly, preferably within 24 hours of such approval.
Moreover, lenders such as Bajaj Finserv have come up with pre-approved offers to quicken loan processing. Other than personal loans, these offers are also valid for several financial products, including business loans. Applicants can look at their pre-approved offers by entering their mobile number and name.
Lastly, know that while it is as easy to avail of a loan for home renovation; it can also create a lot of financial inconveniences if not managed appropriately. So, borrowers must know about home renovation loans, all its terms, fees, and charges, etc. before applying for it.
Also, extensive market research is required to find out the best product from a wide range of options. However, once these steps are concluded, individuals can give their home a makeover with an affordable home improvement loan.