A Beginner’s’ Guide To Get Approved Home Improvement Loan
A home is incomplete until it reflects your true self. A home improvement loan can help you to make your home well suited for you. It not only helps you in renovating your home but also adds some value to it. A home renovation loan can be an easy way to invest in your project, especially when you want to do it early on. Lenders provide personal loan for salaried as well as self-employed individuals.
A personal loan for home improvement is a type of personal loan taken by a borrower for the restoration of their homes. A personal loan for the home renovation is of two types, secured and unsecured home improvement loans.
Unsecured Home Improvement Loans: An unsecured personal loan for the home renovation is one of the most common ways to fund your home improvement project. In these types of loans, no collateral is taken by the lender. It is a fixed-term and fixed-interest rate loan with monthly EMI’s. You can get upto Rs.15,000 with a tenure of your choice.
Secured Home Improvement Loans: A secured personal loan for home renovation usually provides you with a higher sum of money which you can get from a lender. In these types of loans, collateral is taken by the lender as security. These types of loans are suitable for large renovation projects requiring a large amount of money.
It is easier to apply for an unsecured home renovation loan as compared to that of secured home renovation loans. Secured personal loans require more paperwork.
Factors to keep in mind before availing a personal loan for home improvement :
If you want to avail the benefits of personal loan for home improvement, it is essential to keep some factors in mind. Mentioned below are some considerations:
- Calculation of amount required for the renovation: The first step before applying for a home renovation loan is to evaluate and determine the approximate amount of money necessary for the improvement of your house with the help of a professional contractor. With the help of calculation, you can determine the amount of loan and cost of the credit you have to pay at last. It is advised to work with 2 or 3 contractors to get the best deal possible.
- Check your credit score and loan repayment history: Before sanctioning any loans, lenders always check the borrower’s credit score. Based on their credit score, the amount of money which they can lend is determined. Higher the credit score, higher the chances of getting a personal loan for home renovation. It is advised to regularly check your credit score for better chances of getting a home improvement loan.
- Estimate your Equity:Loans for home renovation are mostly offered on the equity of the homeowner. It is necessary to convince the lender that you can repay the amount under any circumstances. It is the equity of the owner that influences the final loan agreement papers.
If you are thinking of renovating your house according to your taste with a bigger balcony, classy looking living room or with modern facilities, you can take a personal loan for the home improvement. These types of loans are affordable, with low rates and are easy to apply. It is easier to apply for an unsecured home renovation loan as compared to that of secured home renovation loans. One can apply for the home renovation loan jointly or individually according to their need.
Get yourself a dream home you have been waiting for and renovate your home according to your needs with a personal loan for home renovation.