Home renovation is extremely important. It adds to the house’s aesthetics and improves your quality of living. Still, the home renovation also involves necessary fixes that help maintain your property and adds features that will enhance the value of your property. This is one thing that you must be doing from time to time. But the only thing about home renovations is their high cost. A good home renovation often costs lakhs, and adjusting this amount to your monthly budget might be stressful. An instant cash loan for the home renovation can serve you best in such a scenario.
Availing of a salary loan is easy, hassle-free, and quick. With the increased competition in the personal loan sector, you can easily get a quick loan with great interest rates that help you with the necessary cash and keep your loan affordable.
Read on to discover some of the lesser-known benefits of using a personal loan for home renovation.
What is a personal loan?
A hassle-free personal loan can finance any significant purchase, such as a wedding, higher education, medical expenses, home renovation, etc. They require minimum documentation and can be either secured or unsecured.
A secured personal loan means you must provide collateral to the lender for borrowing the sum. Therefore, in default, the lender can use your collateral to pay the debt. An unsecured personal loan does not require any collateral. You can borrow the amount after submitting the documents and getting approval. This loan is riskier for lenders, so lenders typically charge a higher interest rate.
Benefits of a personal loan for home renovation
There are many benefits of taking a personal loan for home renovations. Here are some of the most prominent benefits of a personal loan for home renovation.
It is collateral-free
A personal loan has two types – secured and unsecured. You can choose to take an unsecured personal loan. This means you don’t have to put any assets as security toward the loan. The only things you need to do is fulfill the eligibility criteria and submit the required documents. Upon approval, you will be free to use the loan amount according to your wishes.
It has a hassle-free process.
Depending on your lender and credit score, you can avail personal loan quickly and easily. The document requirement is minimal, and you can apply for a loan online within 15 minutes. Many lenders provide pre-approved personal loans. However, that depends on the credit profile of the borrower. Some documents you must submit for a personal loan include an application form with a photograph, address proof, and income proof (Form-16 for salaried employees and ITRs for self-employed).
It is a multi-purpose loan.
Unlike an education or a home loan, salary loans are not tied to a specific purpose. You can use a personal loan for home renovation, home furnishing, home repairing, and much more. You do not have to mention it to the lender while applying for the loan. Once you qualify for the loan and your details are verified, your instant cash loan will be disbursed into your account, and you can use this amount for any purpose.
Easy eligibility
The eligibility criteria for a personal loan are simpler than other types. While the standards differ per the lender, the basic conditions are as follows.
- Age: 18-60 years
- Credit score: 750 or above
- Minimum work experience: 1 year
- Minimum income: At least 15,000 every month
Flexibility
Lenders typically offer the option to choose a flexible tenure to borrowers. This means you can choose a repayment tenure that works the best for you and doesn’t strain your finances. With a personal loan, your loan tenure can range from 1 year to 5 years. You can choose a term that best suits your affordability and capacity to repay in monthly EMIs. However, it is crucial to consider that a long time means you will have to pay more in interest, while a shorter time means the interest payment may be less.
Quick disbursal
A personal loan has minimum documentation requirements, so the approval process is quick. Many lenders take only 24 hours to disburse the loan amount. Some also offer the option of a pre-approved personal loan which ensures immediate access to funds.
- Flexibility in end-use
If you opt for a home renovation loan, you can use the loan amount only for construction or repair work. But with a personal loan, you can use this loan amount for furnishing, décor, or any other purpose you see fit.
Conclusion
Though you can also opt for a home renovation loan, a personal loan has many benefits, especially if you have a small-ticket requirement. A home renovation loan may suit you better if your renovation requires a huge sum. Also, note that a home renovation loan is a secured loan, so you will have to put up collateral against this loan. But for availing of a personal loan, you do not require any collateral.
A personal loan allows the borrower to use the funds per their wishes. And that is why it is considered best for financing home renovations. Before choosing the lender and type of loan, do your research and choose the one that suits you the best.
References:
https://www.personalfn.com/dwl/loans/should-you-opt-for-a-personal-loan-for-home-renovation
https://www.fullertonindia.com/knowledge-center/how-to-apply-personal-loan-for-home-renovation.aspx
https://www.investopedia.com/personal-loan-5076027
