During the festive season, many people look towards revamping their home by renovating it completely. There is no disagreement about the fact that renovating one’s home is on the rather expensive side when it comes to your annual expenses. Home renovation is quite a hefty investment, from getting a repainting job to getting the drainage pipes replaced. If you were already aware of this and have prepared your finances adequately, you’re likely not to dip into your finances too much. If not, you’re in luck. Personal loans make for a great way to finance a home renovation. Here’s why you should consider taking out a personal loan if you wish to renovate your home.
1. Lowered interest rates
Personal loan interest rates can go as low as 11% today. This makes them quite attractive to those wishing to finance big-budget projects like home renovation. A low-interest personal loan can help you cope with paying back the funds you have borrowed. In fact, it is recommended to keep personal loan interest rates as low and budget-friendly as possible. Hence, it is important to compare different options available in the market before making your decision.
2. Unsecured loans meaning no collateral
Personal loan eligibility is often a hassle-free process, as long as one boasts a good credit history. Another reason personal loan makes a great way to finance a home renovation is that they are unsecured. Unsecured loans do not require that one put up any asset as collateral. An asset like your home could be taken away from you if you default on the payment of a secure loan. With unsecured loans, this issue ceases to exist. Personal loan interest rates are higher for the reason that they do not take up this collateral. Hence, personal loans are less risky when it comes to defaulting on one’s payments.
3. Flexible repayment tenures
With the right lender, you also get flexible loan repayment tenures. This makes your payments structured to the time horizon that befits your financial needs. You can customize your repayment EMI structure to what is most convenient for you. This makes your personal loan repayments a lot more flexible.
4. Quick loan disbursal
Finally, one last aspect worth considering is how much you can borrow and how it will be disbursed. Lenders allow you amounts as high as ₹25 lakhs that can be borrowed as a single personal loan. You can also expect quick disbursal of any loan amount you borrow with the right lender, provided you meet the personal loan eligibility criteria. You may tackle certain uncertain expenses when renovating your home, like unexpected leaks that require immediate fixing. Hence, a lump sum personal loan amount that is quickly dispersed comes in handy during this time.
House renovation can be a hit to one’s budget, but with attractive personal loans on offer from quality lenders, one can opt to renovate one’s house without an immediate strain on the budget. Yet, make sure that you compare the various offerings in the market before deciding to borrow, as choosing the right option can have huge long term benefits.