Do you wish to renovate your home but don’t have enough funds for it? If yes, then reading this article will help you understand how you can renovate or restore your home by obtaining a personal loan.
How can you finance home renovation expenses with a personal loan?
The thought of availing of a loan can be overburdening for a person who is already going through a financial crisis. But, it’s not the same anymore since the introduction of personal loans.
A personal loan is quite affordable in contrast to other categories of loans and is most often taken to tackle emergency medical expenses, higher secondary education fees, etc. However, now there has been a significant rise in the number of people obtaining a personal loan for home renovation purposes. It takes less than one hour to get a personal loan approved, and the loan amount will be disbursed to your respective account within 24 hours. Here are a few steps that you should keep in mind when you plan on taking a personal loan to meet your home renovation expenses:
- Determine your budget:
The primary step that you need to consider for getting a personal loan is aggregating all the requirements and determining a specific amount that needs to be borrowed. It’s vital because if the amount falls short, you might have to spare more time to apply for another loan. And, this will also result in additional labour expenses, if you have hired them on a contractual basis. On the other hand, borrowing excessive money can lead you to make unnecessary expenses. Subsequently, the overall repayment of the EMIs will also be higher. Therefore, you should determine the precise amount that will meet all the requirements for your home’s renovation purpose.
- Review eligibility requirement:
Every lender has different eligibility criteria as well as requirements. Hence, make sure that you use a personal loan eligibility calculator to know the amount you can borrow according to your eligibility. It’s a free online tool that most lenders offer these days to ease out your borrowing experience. Moreover, you need to maintain a good credit score as its one of the key factors reviewed while sanctioning your eligibility for a personal loan amount. A higher credit score might also lead to a personal loan with lower interest rates and quick approval.
- Explore interest rates and get all the documents ready:
After you determine your budget and eligibility, it’s time for you to assess all the personal loan interest rates offered by different financial institutions or NBFCs. While comparing different rates, you should keep in mind two factors- the repayment period and miscellaneous charges. After you select a personal loan scheme, you should gather all the relevant documents regarding identity proof, permanent address, sources of income, Income Tax returns, salary slips, etc. It’s always advisable to keep all these documents ready and submit them as soon as the concerned officials ask for them. This will eventually avoid slowing the documentation process, and you will be able to get the desired loan amount in a quick span of time.
These were some of the crucial factors that you should consider before applying for a personal loan for renovating your home. Unlike other types of loans, you don’t have to specify any particular reason for obtaining a personal loan. Most lenders let you apply for a personal loan of up to Rs 25 lakhs, which can help you immensely in remodeling your home. The entire personal loan amount will be available to you in a single installment and will be deposited directly into your account.