Loans can give you quick access to funds when you need them, no matter whether it is an emergency or a goal. Home renovation can be either, be it an urgent roof repair or a planned revamp of interiors and exteriors. So, if you’re wondering, ‘How can I get money for home repairs?’, you should know that there’s a specialised loan, a home renovation loan, that is perfect for this task.
What is a Home Renovation Loan?
A home renovation loan is a customised personal loan, which is an unsecured form of credit. You can apply for home renovation loan whenever you need funds to finance your home renovation project online or offline by matching the eligibility criteria of your lender and submitting the personal loan documents necessary to the application.
In order to keep your credit score up and find a cost-effective home renovation loan, keep the following three things in mind.
Check Eligibility Criteria and Know Application Formalities
Lenders have certain procedures based on which they sanction a loan. In order to qualify for a personal loan for home improvement, you first need to fulfil the eligibility criteria specific to this loan. Keep in mind that these may vary among lenders, so compare the criteria online before you apply. Sending in your loan application without meeting the criteria will result in a rejection of your application and even hurt your credit score.
As per the terms and conditions of the personal loan for home improvement, you are eligible to apply with most lenders if you are a residing citizen of Indian between 23 and 55 years of age, have a good credit score, have a steady income, and meet the minimum salary requirement based on your city of residence. Once you meet the criteria, you’ll need to submit the common personal loan documents required to prove your eligibility, so keep them ready in advance. Next, check if you can apply online, as this is an easier way of applying for a loan.
Compare Loan Terms to Select The Best Loan
While you check the eligibility terms, also check hidden fees such as charges for loan statements, penal interest, EMI bounce charge, processing and secure fees, and prepayment fees, etc., and other terms of the loan offered by various lenders. This includes the maximum loan amount, the tenor available for repayment, and other features of the loan. This will help you select the right lender whose terms make for a convenient borrowing experience.
For instance, when you select the personal loan for home improvement offered by Bajaj Finserv, you not only get funding up to Rs.25 lakh to be repaid in up to 5 years, but also access the handy flexi loan features. Made for recurring expenses involved in home renovation projects, this facility allows you to withdraw funds from your sanction in parts and multiple times. Here interest is charged only on the amount you use and not the entire sanction. Moreover, you can repay the loan as interest-only EMIs and principal at the end of the tenor. This way you will be able to reduce your EMIs by up to 45% and manage your cash flow better. So, meeting your frequent home repair expenses and even meeting additional costs becomes easier with a flexi loan.
Choose The Best Interest Rate and Plan Your Repayment
Rather from questioning, ‘How much can I borrow for home improvements?’, ask yourself, ‘How much do I really need’? By calculating your expenses in advance, you’ll keep yourself from over-borrowing, which can be detrimental during repayment. Borrowing a little extra via the flexi loan, however, can be an effective way to address unpredictable costs while keeping your EMIs affordable.
The next step you should take is to compare personal loan interest rates offered by various lenders and choose the lender who offers the most competitive one. As you know, the higher the interest rate, the steeper will be your EMIs. The best way to see the effect of even a slight increase in personal loan interest rates reflects on your EMIs. To plan your repayment in advance, using an EMI calculator is a wise idea. This way, if you see your EMIs amounting to too much, you can reduce your loan amount and plan your renovation activities in phases or by priority.
Though you can raise finances instantly with a personal loan for home improvement, keep your affordability in mind and act prudently. To enjoy the best deal, check your pre-approved loan offer from Bajaj Finserv and enjoy instant approval on a customised offer.