Why home improvement loans a good choice?
Nowadays, large scale home renovation projects can involve a significant amount of expenses. In that case, individuals may consider opting for secured loans to arrange the necessary funding. However, if you do not wish to mortgage your property to avail a loan, you can consider applying for a home renovation loan.
As it is an unsecured loan, you will get approved quickly if you have a high CIBIL score and stable source of income. Apart from that, there are some other reasons why home improvement loans are a good choice.
These are listed below –
- Flexible tenor –
When you apply for a personal loan for home improvement, you can opt for a repayment period as per your convenience and financial capacity; tenors usually stretch up to 60 months. It will also enable you to formulate a suitable financial budget to avoid any financial debt.
- Simple documentation –
While applying for a home renovation loan, you must keep the necessary documents handy to complete the application process. The essential documents required while applying for a personal loan include –
- KYC documents which include PAN card, Aadhar card, voter ID card or any other officially valid documents.
- Bank account statement for the previous three months
- For salaried applicants – Employee ID card and last two month’s salary slip
Besides the documents mentioned above, financial institutions may ask you to submit any other relevant documents.
- Easy application process –
You can easily apply for a home renovation loan online by following a few simple steps. These steps have been listed below –
- Go to your lender’s online web portal.
- Click on the personal loan tab and select the online application form.
- Enter employment details, financial and personal information in the designated fields. Make sure that the information entered is correct. Errors in the application form are one of the reasons for personal loan rejection.
- Enter the loan amount that you wish to borrow and repayment tenor of your choice.
- Submit the application form.
If your loan application gets approved, your lender will contact you to collect the necessary documents.
- Pre-approved offers –
Financial institutions like Bajaj Finserv also provide pre-approved offers to borrowers for a hassle-free and time-efficient loan application process. You can avail such offers on credit cards, personal loans, business loans, etc. Check your pre-approved offer before applying for a loan by providing basic information like your name and contact number.
Before applying, you can use online tools like a personal loan EMI calculator to know the monthly instalment that you need to pay. This tool will enable you to calculate the amount quickly and without any errors as opposed to manual calculators. The calculator is easily accessible online or on your lending institution’s official website.
Go through the steps below to use the calculator properly –
- Open the calculator and enter the loan amount, tenor, and home renovation loan interest rates. Keep in mind that EMI will vary based on the type of interest rate you opt for.
- Based on the above information, the calculator will display the EMI, total repayment amount and total interest payable.
You can adjust the loan amount and tenor to derive different EMI amount. It will enable you to figure out the most affordable monthly instalment based on your repayment capacity.
Hence, you can use a loan EMI to frame a proper financial plan even before applying for a personal loan for home renovation. The calculator can also be used to compare personal loan interest rates offered by various lenders.
To conclude, before opting for a personal loan for home renovation from a lending institution, go through their website to gain an idea about processing, foreclosure, and prepayment charges. You should also ensure that there are no other hidden fees involved.