Renovation is an integral part of homeownership. But a lot of people refrain from it due to monetary constraints. A personal loan can get rid of those qualms and help you fund home renovations.
Personal loans are a form of unsecured loan that can finance the borrower’s interests and desires. Most loans are meant for a particular purpose, for example, home loans, car loans, bike loans, etc. In personal loans, there are no restrictions on what you can use the loaned amount for.
Some people use it as a travel loan, and some use it as a home renovation loan or even a wedding loan. Such flexibility in combination with the ease of online modes of applications has made personal loans the perfect solution for funding requirements.
Buying your dream house is surely not enough; you look forward to renovating the house according to your tastes. For your home to live up to your comforts and aesthetics, it may require some serious repairs and maintenance.
Major changes and repairs can rack up a hefty bill, and paying them all in one go is not a financially viable option for most people. To cover these expenses without compromising, you must consider submitting an online personal loan application. Availability of a personal loan for home renovations comes with several benefits, such as the following.
Reasons why to opt for Personal Loan for Home Renovation
- Renovation Adds to Property Value
Although not many people buy a house intending to sell it, it is important to ensure that your property increases in value over time. Renovation loans are a great way to finance this and can be viewed as an investment rather than a loan. You also get tax benefits when you use your loan for renovations.
You should also note that home renovation is not just limited to aesthetics. It is also linked to maintenance of the house and logistical issues. A lot of homeowners put off renovation due to a lack of funds. Ignoring these issues leads to the already existing faults deteriorating and sums up a larger bill. In such cases, it is best to tackle the situation at the earliest by undertaking a personal loan for renovation.
- Collateral-Free Loan
Personal loans are unsecured, meaning you can avail up to Rs. 25 lakhs in loans without having to pledge any assets in the form of collateral. A personal loan is apt for homeowners as they can take a loan without compromising on ownership of their house.
Since personal loans are unsecured, they do not call for much documentation. The documents required for the application process are standard ones that all adults already have. Due to personal loan apps, the filing process is also simple. Especially now, with online applications, you do not need to file documents as hard copies. All you have to do is upload the scanned copies on the loan app or the lender’s website.
With online methods, it has become easy for borrowers to apply for personal loans. Not just this, instant personal loan apps also assure quick approvals. Many financial institutions offer personal loans with a sanction period of only 24 hours to 72 hours. Upon approval, even the disbursal is quick. After all the information provided has been verified, the loan amount is disbursed in 24 hours.
- Cover Unexpected Expenses
Many save up for home renovations, thinking what they saved will be just enough to cover everything based on quotations provided. But a lot of people find themselves requiring more funds than they budgeted for or saved. This happens because plumbers, electricians, and carpenters only provide an estimate. Throughout the renovation, they tend to discover many more problems that need fixing, which adds to the expenses.
The best way to deal with such unplanned expenses is to consider taking a personal loan. Getting a loan of a slightly larger amount than you budget for is a wise decision as it saves you the hassle of re-applying. These loans can be paid back smoothly over flexible tenures.
- Track your Loan Application
One of the best features of taking a personal loan is transparency. Once applied, you can track all the updates and progress in the process through the customer portal. All you have to do is log in with the given customer ID and your password.
A user-friendly portal for customers ensures that you do not miss out on important payment deadlines. In these cases, personal loan apps are extremely helpful as a default in payment can cause harm to your credit score. Furthermore, a consistent debt repayment history helps you avail of higher loan amounts at lower interest in the future.
To better plan your home renovation project, avoid common mistakes made in the process. Kickstart the process by finding a reliable lender through thorough research. It is also helpful for borrowers to use a personal loan EMI calculator to get an idea of what they can afford.
In times when you need extra funds or a little financial assistance to achieve your short-term or long-term goal, such as home renovation, personal loans can be your savior!