How to choose a loan for home renovation?
Last Updated : June 11, 2016, 7:01 a.m.
Choosing the right lender for your home improvement task is not so easy. Earlier, people used to renovate their homes with their savings, but in the last few years this trend has seen a sea change in the spending style. Now, people just not want to paint their homes or repair outer sides of their home, but they want to give their home a totally new look. There is no limit to spend on home renovation as you can change each and every section of your home from your living rooms, dining hall, or kitchen. Be it any area of your home you can change the look of your home by renovating it. Choosing the new look and deciding what kind of work you want to carry out in your home is not easy. But, to arrange funds to carry out this task is equally important.
Either you have to use your saving to carry out the work or you will borrow a loan from the bank. You can borrow the loan from any of the bank to renovate your home. But, what type of loan is suitable to carry out this renovation work? Taking a home renovation loan or a home improvement loan is a good idea. But, it is not simple to take that loan, it requires a lot of documentation and long procedure. Besides, taking a personal loan to carry out your renovation work is more simple. You can easily get the loan amount if you will meet the eligibility criteria. Which home renovation loan is right for you? Taking a personal loan or home improvement loan? You are not alone who is thinking about this, according to a latest data, in last three years the number of people who have applied for home improvement personal loan has grown up.
While taking a loan you need to think more practically rather emotionally. You need to calculate about all the expenses, costs linked with the renovation work, amount of money you are going to invest, the share of loan you are going to avail for doing this renovation. While you can use this personal loan for any of the personal reasons without giving any proof of expenditure to bank. The application process of personal is very simple and straightforward. You can easily apply for a loan and get is disbursed within a week if you meet the eligibility criteria. Here are some reasons why you should opt for personal loan to renovate your home.
Simple and easy process: The loan application process of home loan is quite simple and straightforward. You can easily apply for a personal loan by visiting any of the websites of banks or NBFC to avail a loan. As this is unsecured loan, so you are not supposed give anything as collateral to avail a loan.
Fast disbursal: If you will meet the eligibility criteria of the bank you can easily get the personal loan. You can get a personal loan disbursed within seven working days. The disbursal of personal loan is faster than other loans.
No evaluation of anything: To avail a personal loan for home renovation you are not required to evaluate anything. Or get the market price before availing the loan against it. So, it also shorten the process of borrowing the loan and ensures faster process. How much amount you can borrow in top up loan or loan against property depends upon the value of the property? But, in personal loan you are not required to evaluate anything.
No need to wait longer for renovation work: As the process and disbursal of the personal loan is faster than other loans, so you are not supposed to wait for a long-time to start your renovation work. In most of the cases, you will get your loan disbursed within seven working days if you will meet the eligibility criteria of the bank and bank approves your application.
No insecurity of losing the home: As in personal loan you have not used your home as collateral to get the loan. Therefore, you can stay tension free in home home as you are not going to loose your home in case of any delayed, late or non payment of the loan. However, failing to pay the personal loan has its own type of risk, but it is far better than losing your hard earn equity.
However, borrowing personal has its own pitfalls, such as if you want to borrow a large amount for renovating your home in that case you are not able to get a higher amount at lower rate of interest, which is easily possible in home loan. Even the duration of personal loan is lower as compared to top-up loan and other renovation loan. So, make a decision after evaluating all the points and get more benefits on your availed loan. Don't make any decision in a hurry as you are supposed to pay the loan, so take the most pocket friendly loan to renovate your home.