Making changes to your home occasionally is quite common. Whether it is improving your bedroom style, incorporating contemporary woodwork, or introducing a completely eclectic décor theme, home renovation is a part of every individual’s household. In the Indian context, numerous renovations are often undertaken around significant family functions, festivals, or celebrations.
The functions and celebrations have a cost implication of their own. Hence, making significant improvements to your home within a restricted budget can greatly impact the overall quality and end finish. This is possibly the reason why Personal Loans for Home Renovation are rapidly gaining popularity.
What is a Home Renovation Loan?
A Home Renovation Loan is an Unsecured Personal Loan, which means that the lender does not require you to put up security against the approved Loan. Since it is neither a Mortgage nor a Loan Against Property, you need not provide the deeds of your home. You can repay it in easy and convenient monthly instalments or EMIs. The tenure can range anywhere between 12 to 60 months*.
Moreover, the Loan amount can go up to Rs. 30 lakh. The EMI amount is determined by the Loan amount as well as the lender’s processing fees and interest rate. Most lenders offer the option of foreclosure before the end of the Loan tenure. Depending on the actual tenure and the point of foreclosure, you may or may not be charged a foreclosure fee.
How to apply for a Home Renovation Loan
Applying for a Home Renovation Loan is simple. Here is what you need:
- Basic KYC documents
- Income proof like salary slips or ITRs
- A decent credit score preferably 700+
- Stable employment or business track record
Once approved, the funds are credited directly to your Bank Account for you to use as needed.
Why choose a Home Renovation Loan over a Credit Card Loan?
There are several ways to finance your home renovation project. It is hard to decide on the mode of finance. Often, Credit Cards work well for those who wish to undertake small-scale renovations. However, they lack stability. With fixed interest rates, a Home Renovation Loan offers a lower APR than a Credit Card. It also means that there will be no fluctuations in the EMI amount throughout the repayment term.
Credit Card Loans come with very high interest rates, and if you cannot repay the amount spent within the given billing cycle, you end up accruing more debt. Major home renovations come at a high price tag. Therefore, a Personal Loan for Home Renovation best fulfils your financial needs to carry out the required repair, maintenance and improvement work.
Conclusion
Considering the financing options at your disposal, a Personal Loan for Home Improvement ensures that you can start the renovation journey conveniently, with easy repayments and staying well within your means. You can apply for it online, receive approval immediately and have the funds disbursed soon to your account.
