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Home Renovation Loan
Spending money on home renovation is an excellent idea to improve the living standard and boost the property’s value. That is why many people borrow home renovation loans to cover the renovation and maintenance costs of their homes. These are the best funding options to conduct a home repair, renovation, upgrade, or improvement project. Since these loans are similar to Home Loans and have comparative interest rates, most people who know “how to get a Home Loan?” also know the home improvement loan process.
Let’s look at a few reasons why a home renovation loan is a smart move for a home.
Ample Loan Amount
Whether the homeowner wants to add a room, make a home office, revamp the interiors, or renovate the kitchen or bathroom, a home renovation loan is their answer. With this loan, they can finance all the expenses to change the house’s overall look. Reputable lending institutions fund up to 90% of the project’s cost without any hassle, making an ideal funding option for planning a home renovation.
Competitive Interest Rates
Lower interest rates are the biggest advantage of getting secured home repair loans. Getting a home renovation loan at a lower interest rate makes the repayment easier than unsecured Personal Loans. Unsecured Personal Loans for home renovation often come at higher interest rates. On the contrary, secured home improvement loans have interest rates comparable to housing loans. That is why most homeowners looking for substantial loan amounts opt for secured funding. By paying a lower interest rate on a high loan amount for an extended period, you can save a considerable amount by the term’s end.
Smaller EMIs
Borrowers with limited income sources can opt for a longer repayment term. As a result, they can borrow a larger amount at a lower interest rate, fund the renovation project now, and pay its price conveniently in easy EMIs. Lower interest rates and extended loan terms mean smaller EMIs to pay each month.
So getting a secured home renovation loan is always a better option for people with a tight monthly budget. An EMI calculator helps borrowers calculate the monthly EMI amount, allowing them to select an adequate loan term with budget-friendly EMIs and repay them on time.
Minimal Paperwork
Many housing finance companies offer home repair loans as well. So, those who have already taken a Home Loan from the same lending institution need to complete minimal formalities for home renovation loans.
Banks consider the applicant’s previous documents and credit history, requiring minimal paperwork to approve the loans. Those taking a home renovation loan from a lending institution for the first time should know they just need minimal documentation.
Usage Flexibility
A secured home improvement loan offers the freedom and flexibility to use it for various projects. Those who take a home improvement loan can use the loan amount for any home renovation-related purpose. Whether they want to extend a room, construct an extra bathroom, expand the balcony, or cover an exposed area in the home, they can do all that and much more with a home renovation loan. If the borrower saves some amount from the loan, they can use it later to build cabinets, replace doors or windows, buy upholstery, etc.
More Loan Options
While looking for an unsecured Personal Loan for home renovation, borrowers have limited options, and only a few lending institutions offer these loans to low-salary or bad-credit individuals. However, secured loans have broader options due to the minimal risk involved for the lender. Aspiring borrowers can get a higher loan amount at competitive interest rates.
Flexible Repayment
Secured home renovation loans have longer repayment terms that borrowers can repay conveniently as suitable to their monthly budget. So no need to worry about repaying the loan within a short period. Flexible repayment schedules may extend up to 15 years, making the repayment financially comfortable for most borrowers.
Even a minor change in the house structure can transform its overall look, uplift the family mood, and increase the property’s value significantly. So why keep the renovation project on hold due to a lack of funds? Know how to get a Home Loan for home improvement and give your home a makeover to enjoy the small joys it offers. Apply now and make your home festive-ready without worrying about repayment.
