3 Things to Consider Before Applying for a Home Renovation Loan - Loan Trivia

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Tuesday, 16 July 2019

3 Things to Consider Before Applying for a Home Renovation Loan

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Home renovation can be expensive, and you may need some financial help to finish a re-modeling project you started. Luckily though, you have the option of availing home renovation loans to get you through it. 

Home renovation loans or home improvement loans are essentially loans that you can avail to give your property a facelift. You can use the loan to hire interior designers, purchase furniture, redo the flooring, repair the plumbing, or anything related to improving your house. 

Both banks and non-banking financial companies (NBFCs) offer home renovation loans. You can opt for the House Renovation Loan that offers a high loan amount of Rs 25 lakh. These Personal Loan for home renovation comes with flexible tenors ranging between 12 to 60 months, and easy online application. What’s more, this loan is instantly approved and requires very little documentation.

However, remember that availing this loan means that you will have to pay EMIs towards repayment. So, before applying for a loan to help you renovate your home, seek answers to the following questions: 

Am I Eligible For a Personal Loan? 

There are some eligibility criteria for availing a Personal Loan for home renovation. These include your age, salary, city of residence, employment status and more. Make sure you provide correct information and submit relevant documents to a lender while applying for a Personal Loan. You can check your eligibility for Personal Loans easily by using a Personal Loan eligibility calculator. 
Read More: Ways To Finance Your Home Renovation

What Are The Personal Loan Interest Rates and Charges? 

You need to find out the charges applicable on your Personal Loan for home renovation in order to plan your finances better. Remember to compare the Personal Loan interest rates before you apply online. Other charges applicable may include foreclosure charges, processing fees etc. 

Will I Be Able to Repay The Loan? 

This is by far the most important question that you’ll have to consider. Unless you are sure that you can repay it, it is not a prudent idea to avail any kind of loan, including home improvement loans and Personal Loans for home renovation. 
Calculate the EMI using an online loan calculator, and see how much you can afford to pay. Otherwise, it will increase your debt servicing ratio, which in turn will lower your credit score and your ability to avail other loans later. 
Read and understand all the terms and conditions of the loan properly before signing on the dotted lines. 
You can avail pre-approved offers from Bajaj Finserv on various loans such as Personal Loan, home loan, business loan, etc. The pre-approved offer eases the loan application process manifold.
Must Read: 3 Reasons to Renovate Your Home in 2019

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