Renovating your home every few years can keep it looking chic and breathe new life into your living space. Moreover, the right renovations can also help increase your property’s value. However, the cost of renovations can be significant and not everyone may be able to afford renovations through a lump sum cash payment. Fortunately, personal loans can be a great option to finance your home renovation.
In this article, we will take a look at how you can use personal loans as a tool to fund your home improvement plans.
Personal loans for home renovations
Personal loans are a type of unsecured loan that you can use for various purposes, including home renovations. Unlike home loans or auto loans, personal loans do not require any type of collateral. Thus, you can be eligible to get a home renovation loan simply based on your credit score and income.
Some of the key benefits of using a personal loan for home renovations include:
Quick approval and loan disbursal: Personal loans generally have a quick approval process compared to other types of loans, and you can get the loan amount deposited into your account in just a few hours.
Fixed interest rates and repayment terms: Having pre-decided interest rates and fixed Equated Monthly Instalments (EMIs) makes it easier to make a financial plan to pay off your loan comfortably on time.
Flexible loan amount: Most banks offer personal loans ranging from just a few thousand rupees to tens of lakhs of rupees, depending upon the creditworthiness and income level of the borrower.
Savings remain intact: In case you have a lump sum of money that you can use for home renovations but don’t want to deplete your savings, then taking on a personal loan and paying it off over time can be a great alternative to depleting your savings.
If you are on the lookout for a personal loan for renovation, consider applying for an Instant Personal Loan with IndusInd Bank. The IndusInd Bank Instant Personal Loan offers some of the most appealing features, like:
- Instant loan approvals with an online video KYC process
- Loan amount between ₹30,000 to ₹5 lakh
- Flexible repayment tenure between 1 to 4 years
- Competitive interest rates
Considerations before taking a personal loan for home renovations
While personal loans can be an excellent option for financing home renovations, consider the following:
- You should only borrow an amount that you can comfortably pay off over the selected loan tenure. Hence, even if you are eligible for a higher loan amount, only borrow what you need to finance your home renovations.
- Interest rates may be higher than secured loans. Since personal loans are unsecured, they often come with higher interest rates than other types of secured loans. Hence, make sure to look for a bank that is offering competitive interest rates.
- Defaulting on your loan payments will negatively impact your credit score, and your ability to secure new loans in the future. Hence, don’t miss any EMI payments.
To conclude
Renovating your home with a personal loan will not only make your home a better living space but can also increase the value of your property. By carefully considering all the above-given factors and carefully planning your home renovation project, you can use a personal loan to transform your home while managing your finances responsibly. Make sure to only borrow the necessary amount for renovation that you can comfortably repay on time.