Getting home renovation involves everything that is required to make a home more secure, habitable, convenient and comfortable to live in. Renovating a home can be time-consuming and complicated, but it’s essential to improve the home’s value, upgrade the home’s function and increase the efficiency of the home. Because home renovation is a costly affair due to the rising cost of material and labour, many cannot afford to renovate their homes. Hence, at times, it becomes important to opt for a home renovation loan. Availing a home renovation loan can be easy if you can clearly state how and in what ways you want to renovate your house.
Home renovation loans can be used to renovate or make repairs in house property. It can be used for buying furniture, bathroom fittings, servicing the electrical systems, drainage and ventilation work. It is a good choice to take a home renovation loan rather than borrowing a personal loan.
Here are some of the benefits of home renovation loan:
- Lower rate of interest– One of the major advantages of securing a home improvement loan is a lower and fixed rate of interest. The rate of interest to be paid in a personal loan is higher whereas the rate of interest in a home improvement loan is fixed. It becomes easy for the customers to repay the loan amount at a lower rate of interest, especially when the loan has been taken for a longer period. Therefore, gaining a secured loan is much better in the long run
- Lesser paperwork – Home renovation loan will require less paperwork, especially if you have taken a loan from the same bank before. Some banks conduct physical verification of the property before approving the loan. There are many commercial banks which require less paperwork for disbursal of home improvement loan. However, if you take the loan from the same bank where you availed a loan before, the disbursal process becomes easier. On the other hand, if you are borrowing for the first time, you are required to go through all the processes and procedures of applying for a loan all over again
- More lender options – If someone looking for a personal loan has a bad credit history, they have limited options. Only a few lenders would want to lend you money if you do not maintain a good credit history. And, more lenders agree to lend money for renovation work if one takes a secured loan. With such kinds of loans, the rate of interest is low and one can get a better loan amount
- Lower EMIs – EMIs will be lower if the money is borrowed for a longer period at a lower rate of interest. Loan on lower rate of interest requires lower EMIs to be paid as compared to getting a loan on a higher rate of interest. It is always the best option to stick to your monthly budget by getting a secured home loan
Home improvement loan offers many tax benefits and financial benefits. With a home renovation loan, one can renovate their house without worrying about the fee of contractors, fee of interior designer and raw materials. Investing money in home renovation is a good idea from the long term perspective.