Things You Need To Know To Avail of a Home Renovation Loan in India

Renovation of your dream home is a costly affair but a necessary evil. With a renovation, your home gets the desired looks and amenities that are modern and classy. However, spending an excessive amount of money on renovation is a nightmare and a severe drain on your savings. This is where home renovation loan from financial institutions comes in handy. Home renovation loans at affordable rates not only lessens your burden but also gives you a sigh of relief from impending expenses.

Renovation loans offered by financial institutions are not only for repairs, new construction, but also for furniture, fittings, furnishing, and more. There are different financial institutions, including public and private sector banks, NBFCs, and personal loan apps that offer home renovation loans in India.

What are personal loan apps?

The traditional banking industry takes excess time to process and lend. They test the patience of the borrower; however the new age personal loan apps are a new revelation. These online apps digitally scrutinize application, verify the documents and sanction the loan amount in real quick time.

The online financial platforms are not only quick in the disbursement of funds but also offer loans at competitive prices. Hence it is an excellent idea to explore personal loan apps space for a hassle-free loan. Some of the best personal loan apps providing home renovation loans in India are listed below:

Six different ways to finance a home renovation

l Borrowing from a friend

One way to finance your home renovation is to borrow it from your friend or a relative, but this is not always a viable option and is generally avoided. However, you can save yourself from paying interest rates if this option is explored, saving you money.

l Line of credit

This is another way to explore for funding your home renovation. Here, you can apply for a line of credit from a financial institution, and based on your eligibility, you are extended a fixed line of credit. The benefit of this method is you only pay interest on the amount utilized and not the entire lump-sum as in the case of a loan.

l Home equity loans

Another method to procure funds for the home renovation is home equity loans from financial institutions. Here lump sum amount is provided, and you start paying the interest rates on the entire amount from the beginning. You can extend the tenure and reduce the EMI to be paid.

l Personal loans

You can avail of personal loans from different financial institutions for home renovation on competitive rates.

l Credit cards

The credit card can also be used to finance the home renovation; however, the interest rates charged are higher in this method.

l Short term house rent

You can rent a part of your home on rental, and the extra cash generated can finance the home renovation easily.

Summary

Home renovation is a tedious process and needs considerable cash. However, there are different methods to finance your dream home renovation so that you don’t end-up exhausting your savings.

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