Makeover your home this year with this financial tool
At the beginning of the new year, you want to usher in a new beginning in your life. To that end, you want to give your home a makeover with some basic repairs and the replacement of some furniture and fixtures. You can either take out a home improvement loan or take out a personal loan. Let’s see which approach is the best.
Why a Traditional Home Improvement Loan Isn’t a Good Idea
You may have heard of home improvement or renovation loans. These are offered by traditional lenders to owners who wish to carry out restoration and repair work on their accommodation (villas, bungalows, apartments). You might be tempted to apply for this loan, but there are some facts about it that you should be aware of:
This loan is only available to homeowners, not tenants or tenants to carry out small non-tenant repairs (involving civil or structural work)
The property must not have an outstanding home or mortgage loan at the time of applying for the renovation loan. If there is an outstanding loan, a higher interest rate may be charged on the renovation loan
The loan is disbursed in several phases upon presentation of a detailed project estimate and a work plan. Each time a certain phase is completed, the lender releases the next part of the payment. Thus, you do not get a lump sum loan amount in your hands. To obtain the next payment, you must strictly observe the deadlines indicated
Estimates and plans for the project should preferably be drawn up by an architect/building engineer mandated by the city or the municipality of the commune.
You must submit a detailed set of documents for property, income, current residence, job details, etc. to the lender so they can assess your eligibility for the loan.
Thus, it is not always easy to obtain this loan, especially if you want to do the renovation of your house yourself without any professional help. But it’s not the end of the road when it comes to fundraising for the project – just apply for a low-interest personal loan from a leader .
Renovate your house with a personal loan
After considering the points listed above, you should think about getting a , aka a personal loan from a home renovation loan application this year. This is a good idea in several respects, because:
The online loan application does not require proof of home ownership, nor a project plan, nor even an estimate of costs and deadlines. Like all lending institutions, the app doesn’t ask you why you’re borrowing the money or if you’re going to use it in phases or all at once. The app disburses the loan, no questions asked, based on your loan eligibility, credit score, source of income, and repayment history.
Once the app is satisfied with your financial and personal credentials, it disburses the low interest personal loan in just a few hours into your savings account. You can withdraw the money immediately and start the project, from purchasing materials and furniture to hiring labor.
You need to submit a few documents as part of the loan application. The set of documents is collected from your home by an application representative and submitted on your behalf. After verifying the documents, the application quickly approves the loan and disburses the amount. It’s a fast turnaround from application to sanction, and you can start the project without delay
Personal loans have a shorter term, so you can pay them off faster and get out of the loan relatively sooner. You are not penalized for foreclosure
How to get home improvement loan i.e. personal loan
You can get a personal loan from a leading loan app, after searching for it on Google Play Store or App Store (for iPhone users). Download and set up the app on your phone, then check your personal loan eligibility. Apply for a loan and submit your documents. Once verified, the loan is approved and paid into your savings account. Repay the loan from your salary or business income every month until the loan ends.
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Posted: Wednesday May 11th 2022, 7:29 PM IST