All You Need to Know About Home Improvement Loans

You can start the chapter of home renovation through hassle free personal loan for home improvement also called home renovation loan. Availability of this personal loan prevents you from dipping into your emergency fund or premature withdrawal of your investments for funding your home renovation plan. Note that such loans come in handy with no requirement for security at minimal documentation. By using the loan proceeds of it, you can meet all your major and minor financial requirements linked with home renovation like home painting, kitchen remodeling, décor change and various other personalized implementations.

Here are 4 major benefits of opting for a personal loan for home renovation:

  • Higher loan amount availability with zero security requirement

Many lenders offer loan proceeds of up to Rs 25 lakh for home renovation. You can use the proceeds to buy different home equipment like AC, washing machine, TV etc., and give your home a thorough makeover. As home renovation loan is an unsecured option, it does not need any security. Lenders tend to approve your loan based on your income, credit profile, past repayment history and various other parameters. Thus, you do not need to block your security or asset to avail this loan, which allows you to keep all your investments free for future utilization.

  • Swift processing

Home renovation in many cases is performed if there is any important upcoming occasion. Most lenders do understand your urge to avail quick loan disbursal and thus may process your loan as soon as possible. Also, many lenders may provide home renovation loans in pre-approved form. Note that preapproved options are provided based upon your past repayment history and credit score and are often processed on the same day you apply for personal loan.  

  • Flexible option to repay

Such loans do not require any lump sum repayments, which means you can repay the loan through EMI option. Moreover, the tenure of the loan can also go as high as 5 years, which allows you to better plan your EMI through the personal loan EMI calculator as per your repayment capacity and cash flows.

  • Attractive rates

Credit score is an important factor evaluated by the lenders to determine your personal loan rate. Higher credit score means lower rate and vice versa. Remember that interest rates may differ from one lender to another, which may range from 9 to 24 percent p.a. In simpler words, the rate of interest provided to you by a certain lender might not be the same in case you approach any other lender with the same credit profile. Thus, ensure to compare amongst various lenders through the online lending market to know the suitable interest rate according to your preference.

Conclusion

The above-mentioned benefits may serve as a savior in events of monetary crunch when renovating your home. However, you should select the personal loan apply button only after you have estimated your overall interest outgo and EMI as per your repayment capacity. Doing so would help you repay your home renovation loan EMI on time without burdening your finances.

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