Are you planning to take out a renovation loan? Start with these 5 steps
If you are considering applying for a home improvement loan, consider the following important factors for a user-friendly experience.
1. Set your home improvement goal
Remember that obtaining funds is part of the journey when considering a loan. You also have to repay the loan, and there is a cost of borrowing. So, determine the essential requirements for your home and apply them accordingly. While the best lenders offer up to Rs. 25 lakh as home improvement loan amount, only borrow what you consider usable and essential.
There is no restriction on the end use of a personal loan for home improvement, so you can use it to achieve the following goals and more:
– Paint your home for a better appearance
– Add a new concrete structure like a garage or patio
– Transform a balcony or attic into a room for teleworking, an office or a child’s bedroom
– Redo your kitchen and bathroom with better accessories, plumbing or repairs
– Develop green spaces or develop a garden on the terrace or balcony
– Replace tiles, doors or windows
– Add home security system and switch to smart devices and settings
With a personal home improvement loan, you can give your home a new look while increasing its functionality. As a result, the value of your home as an asset also increases.
2. Explore the market and look for a pre-approved deal
Compare different lenders and their offers to make an informed borrowing decision. Find out about interest rates and features that can add value to your experience. This can be home collection of documents or 100% online protocols for the application and other formalities. You can also use a pre-approved offer to apply more easily and quickly. Such offers are based on your previous credit experience with a lender and give you an advantage in quick access to funds and minimal paperwork aside from a competitive interest rate. You can save more and execute your home improvement plans stress-free with such offers.
3. Find a lender with simple eligibility criteria
Today, granting a loan has become much easier, and the same goes for a personal loan for home renovation. However, different lenders have different terms, and failure to meet these eligibility parameters has negative consequences. To prevent your loan application from being rejected, find a lender who requires you to qualify for the loan on simple terms. You can get a home improvement loan quickly from the best lenders if:
– Your age is between 20 and 67 years old
– You work full time in a public company, a private organization or a multinational
– You are a permanent citizen residing in India
– Your CIBIL score is 750 or more
– You meet the city’s minimum income requirements
4. Check the cost of the loan and choose the best terms
Budgeting for your loan is essential to making the right borrowing decision. When applying for a loan, look beyond its interest rate. These additional costs include the following.
– Processing fee
– EMI rebound fees
– Statement fees
– Secure fees for online application
– Partial prepayment charge
– Seizure costs
– Penal interest on missed IMEs
Make sure the lender you choose is transparent about these fees and also offers a competitive interest rate. That way, you can make sure you plan for all of those costs and don’t get caught off guard at a later stage.
5. Plan your reimbursement before proceeding
Rather than filming in the dark, calculate your IMEs and schedule the reimbursement before you even apply. This way, you can make sure that your EMI engagement doesn’t strain your finances. With the best personal loans, you can enjoy a long duration up to 60 months. This reduces your monthly payments. However, you can reduce your interest expense by choosing a shorter term. Use an online EMI calculator and calculate different EMI for different loan amounts and terms. In this way, you can select the option that best suits you.
With this action plan in place, you can move forward and make your home improvement dream come true! For a stress-free experience, consider the Bajaj Finserv Home Renovation Loan. It offers ample sanction with no hidden costs and a long duration of 5 years. You can avail this loan easily by submitting just a few documents. With its Flexi credit facility, you can reduce your initial EMI by up to 45%. So, check your pre-approved offer right away and apply online to upgrade your home!
Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in the creation of this content.
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