Real estate has become one of the most precious possessions of any individual, and thus regular maintenance is necessary to keep residential properties in pristine condition. However, renovating or making any improvements to houses can be expensive and can easily burn a hole in one’s pocket.
To avoid such expenses, availing home decor loan have become a common practice whenever individuals consider upgrading their houses. It provides financial assistance to perform these tasks so that they don’t have to exhaust the savings in the process. Moreover, with the financial assistance of these loans, one can opt for several services such as painting the entire house, changing the flooring, buying furniture, purchasing expensive paintings or showpieces at the same time.
However, several lending institutions in India extend loans for home renovations, and choosing the best among them can prove challenging. Therefore, before applying for a particular credit, individuals need to know about home improvement loans in detail.
How to choose the best home renovation loan?
Refurbishing or renovating homes can be a daunting task considering the cost it incurs. In such cases, a personal loan availed for home renovation can prove to be an excellent option which can help bear the expenses without depleting your savings all at once.
Following are some of the factors that you should consider while choosing a home decor loan.
- Calculate your need
It is imperative for borrowers to assess their projected expenses of renovating the homes before deciding the loan amount. As a matter of fact, while over-borrowing can put an unnecessary financial strain, under-borrowing does not serve the purpose of lending at all. Top lending institutions like Bajaj Finserv offer up to Rs.25 lakh as personal loans for home renovation.
They also provide pre-approved loans on different financial products. This facility makes the entire loan approval process hassle-free and also saves a lot of time. Nonetheless, you can check your pre-approved loan offer by entering your name and contact number.
- Consider tenure
Several financial institutions offer home decor loans with flexible tenure of up to 60 months. Thus, choose the one that suits you the best. However, you need to keep in mind that depending on the tenure, EMIs and interest will vary. Hence, it would help if you decide accordingly.
- Check interest rate and other charges
Home improvement loan interest rate depends on several factors such as your credit score, loan amount and tenure. Apart from that, the lender levies several other charges on it, such as processing fee, prepayment fee and similar expenses. A sum of all of these may cost a substantial amount. Hence, you should know about the fees and charges applicable on your personal loan in detail to avoid any additional fees.
- Repayment option
Repayment is the most crucial part of borrowing funds. Primarily, borrowers require repaying the loan principal and interest rates as Equated Monthly Instalments. Thus, before choosing a home decor loan, borrowers must weigh their income and monthly expenses so that they can repay the debt without upsetting their budget.
- Consider Credit History
Credit score plays a crucial role in determining the loan eligibility of a borrower. Lenders sanction the loan amount based on borrowers’ credit history and other financial statements. People with a CIBIL score above 750 are more likely to have a scope for negotiation when it comes to the loan amount and interest rates. Hence, before applying for a personal loan for home improvement, one should concentrate on the ways to improve his/her credit history to get the best deal in the market.
- Compare different lenders
Since several lending institutions are offering home decor loans, it will be wiser to compare different lenders and the competitive interest rates they offer.
Alternatively, you can also check your personal loan eligibility before applying for one.
How to apply for a home renovation loan?
On deciding your preferred lender, you need to apply for the same. Following is a step-by-step procedure to apply for a home decor loan.
- First, you need to visit the page of the specific lender and download the online form.
- Fill up the form mentioning your name, contact details, employment and financial details.
- Now choose the loan amount, tenure and submit the form.
- The lending officer will contact you shortly for document verification.
- On successful verification, the loan will be approved, and within a few working days, the amount will be credited to your account.
However, to get a fair idea about the interest rates and EMIs, you can also use an online home renovation loan EMI calculator.
If you avail of a home decor loan after considering these factors, you will understand that home upgrades are not as expensive as they seem. All you have to do is read all the loan-related terms and conditions carefully before reaching the decision.