The Indian residential market witnessed the launch of 232 thousand units last year. Apart from these new properties, the owners of older houses spent a substantial amount on remodelling and improvement.
As per reports, the construction cost increased by 35% in the last year. In such cases, home improvement loans come in handy for the individuals willing to renovate their houses.
Although numerous funding options are available for renovating or remodelling homes, personal loans provide a convenient solution for borrowers. Nevertheless, borrowers must consider certain factors before opting for such loans.
What is a home improvement loan?
A home improvement loan allows individuals to upgrade, renovate or repair their existing houses. With these funds, you can make necessary upgrades per your aesthetics and tastes. Maintaining your house is not only essential for increasing its value, but also enhances comfort, look, and style.
Although various financial institutions offer home improvement loans, which are personal loans to the borrowers, nevertheless, before opting for such advances, knowing all the available options is essential.
Things to consider before availing the best home improvement loan
Home renovation is not restricted to repairing or painting the inner and outer house anymore. Now, it includes refurbishing the entire house by adding new pieces, changing décor, etc. This significantly increases the cost and requires substantial funding. In this regard, homeowners can give their home an instant makeover with a home renovation loan conveniently.
Digital personal loans for home renovation purposes are quite accessible these days. But before proceeding, there are certain aspects that one needs to consider. For instance:
Explore the market for flexible terms
Before applying for a personal loan or any other advance, it is wise to compare different lenders and their offerings available in the market. In addition, you need to seek the best personal loan interest rates and features that can enhance your borrowing experience. Being an unsecured variant, the interest rates are usually high for personal loans. Hence, searching for favourable terms is essential to make EMIs affordable.
Most financial institutions extend a tenor of up to 60 months. However, opting for an extended tenor might lead to an increased interest component. In such cases, use an online EMI calculator to make comparisons and find the right personal loan tenor that works for you.
Lenders’ offerings
As already stated above, renovating a house has become a pricey affair with time. This is why it is essential for the owners to measure their needs properly and accordingly apply for home improvement loans. Check how much the lender is ready to sanction and if that matches with your estimated renovation cost or not. Reputed financial lenders like Bajaj Finserv extend substantial loan quantum at reasonable terms.
Such financial institutions also offer pre-approved offers on a host of secured and unsecured financial products. These offers ensure simplified and hassle-free loan processing. You can check your pre-approved offer just by submitting your basic credentials such as name and phone number.
Check repayment options
For making a personal loan application, it is crucial to make a proper repayment strategy. By doing this, individuals can manage their EMI liabilities without much financial burden. However, besides traditional EMI payments, one must also know about the repayment options available on such credit facilities.
For instance, one can choose part-payment or foreclosure options which will allow individuals to repay a certain portion of the outstanding amount or the entire amount before the tenor ends. Of course, this can be only done if one manages to gather substantial funds and wants to end their repayment burden.
Applicable charges
With respect to various repayment facilities or undergoing personal loan application procedures, there are certain charges associated with it. Therefore, before settling for such advances, you must know about the fees and charges applicable to your personal loan levied by your chosen lender.
After assessing these factors, you can come to a conclusion about whether you want to go for that particular lender or not. Then, if the terms and facilities suit your requirements, you can proceed with the application for home improvement loans.
How to apply for personal loans for home renovation?
Here is the step-wise guide that individuals need to follow to obtain funds for home renovation through a personal loan:
Step 1: Click on the ‘apply online’ option to open the loan application form
Step 2: Submit a few details and verify the OTP sent to your registered mobile number
Step 3: Input KYC and income details
Step 4: Select the loan amount you wish to borrow
Step 5: Submit your loan application form
Upon submission, one of the representatives will verify your details and connect you to discuss further loan proceedings.To conclude, the availability of home improvement loans in the form of personal loans eliminates the fund constraint and provides a more liveable home. Besides, the tax benefits work as an additional benefit to them.
