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May 03, 2018 11

Give your Home a Makeover With Affordable Home Improvement Loans

Your dream home is not just about a roof over your head, but it is a reflection of your style and personality. Keeping it in good condition requires renovating from time to time because aesthetics and comfort matter as much as the location and construction quality. However, you need adequate funds to renovate your home, and for that, you no longer have to wait till you save sufficient money; instead, you can opt for a Home Improvement Loan or personal loan.

What is a Home Improvement Loan?

A home improvement loan or a personal loan is a type of loan where you can avail funds for various purposes; to modify, renovate or refurbish your home. A home loan allows you to purchase a home but a home improvement loan allows you to redesign and renovate the home you already own.

An unsecured Loan is a type of loan that does not use your home as a guarantee, which makes it riskier for the lender, not the borrower. They are usually smaller with a higher rate of interest and have to be repaid within 10 years or less. The rate of interest in this type of loan is largely dependent on one’s credit score, and also, is not tax-deductible.

An unsecured loan offers numerous advantages, which makes them attractive. Few key aspects are as mentioned below:

Flexibility in Usage

You can utilize these loans for a range of activities like repairs, extension, flooring, and painting of your entire house. However, you cannot utilize it for building furniture, fixtures or furnishings. For a detailed account of what is and isn’t included, talk to your lender and read all your scheme-related documents before your loan is sanctioned.

Eligibility

You can apply for this loan individually or jointly. If your home is jointly owned, then all owners of the property have to apply for the home improvement loan. A joint ownership may be beneficial in case something untimely happens and you alone are unable to pay it back.

Features

According to your eligibility, you could get loan tenure up to 15 years. The interest rate is similar to the home loan interest rate, and could be either floating over the tenure of the loan or fixed for a specified period.

Documents Required

  • Duly filled application form
  • Identity proof, income proof, employment proof and residence proof
  • Last 6 months bank statement
  • Photographs

Summing It Up

Home renovations are usually not started on a whim. But, sometimes, a dropline facility appears tempting during emergencies. But, why would you want to pay extra charges and interest? You could take a Personal Loan instead and reduce your monthly cash outflows. So, you can withdraw only the amount you need. Take when you want, give when you can!

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