Why Is Availing a Personal Loan for Home Renovation a Better Choice?

Should I Get A Personal Loan For Home Improvements? | Bankrate

Your house is a reflection of your personality. Whether you have a free bohemian soul or a wild one, a deep spiritual awakening or a luxury lusting soul, every corner of your house reflects your identity. But as you grow over the years, your personality is bound to change. This calls for a home renovation. Be it the color of your walls or the furnishing, the vibe of the space or keeping up with the newest trends, the need for renovation can be diverse. But one thing that remains constant is the high cost associated with home renovation. This is where an instant personal loan can help you.

The best thing about applying for a personal loan online is the ease and simplicity. The online process allows you to upload the loan application from the comfort of your home. Besides, there are various reasons that make a personal loan an ideal alternative for covering home remodeling costs. Read the article till the end to uncover all the key facts.

Reasons Why Personal Loans Are Best for Home Renovation

Out of many loans available in the market, personal loans are considered the best financial instrument for being multi-purpose. Here are some of the reasons why you should consider applying for a personal loan to finance your home renovation expenses rather than breaking your savings or bank account.

  1. It’s a multipurpose loan

There are many loans that are available for specific use only. Like if you are taking a loan for your two-wheeler, it will be considered a two-wheeler loan, if you are taking a loan for a home, then it is called a home loan. But, when it comes to home renovation, there is no such thing as a home renovation loan. A personal loan is a multi-purpose loan, which means you can use the loan amount for any purpose. Whether it is for home renovation or making any big purchase the limit is endless. You do not have to specify to your lender how you are going to use the funds. 

  1. Does not Need Any Collateral

Personal loans are unsecured, which means they do not need any collateral or security. This drastically cuts down the time it takes to release a loan. Unlike other loans, where you have to pledge your assets as collateral, a personal loan doesn’t ask for any security. So, if you’re wondering how your loan will be granted, the answer is your credit score and income proof. But since the risks associated with a personal loan is high, the interest rate of a personal loan can also be a bit higher. Check your options carefully to get the best deal.

  1. Easy Application and Approval

The high popularity of personal loans is attributed to their accessibility. You will not need to physically visit a lender, furnish a pile of documents or wait to find out if you have been approved for a loan. In the modern digital era, you may obtain a loan within 24 hours of your loan application being accepted. You can verify your eligibility, complete an application, provide the necessary documents, and get the loan using instant personal loan applications. However, whether you fulfill the qualifying standards and whether the provided papers are error-free will determine the exact duration of your loan getting approved.

  1. You Get Flexible Repayment Options

A personal loan allows you to make a partial payment of your loan in the form of EMI (Equated Monthly Installments). The EMI enables you to make a payment against your loan on a specific date every month. A personal loan allows you to decide the duration of your loan repayment period and creates an EMI option that’s best suited for you. You can use the EMI calculator to check your monthly installment against the loan amount. However, it is important to note here that you should apply only for the amount that you absolutely need. Do not exhaust your borrowing limit. Also, try to keep the loan tenure as short as feasible. Having a long loan tenure will make your interest payout very high.

  1. Minimal Documentation Required

Submitting a bunch of documents while applying for a loan can be very tedious. Unlike other loans, you do not need to submit numerous documents to apply for a personal loan. Most lenders want identification documents such as your PAN card, Aadhar card, and so on. Address evidence, such as a driving license or an Aadhar card, and income papers, such as the most recent salary slips, ITRs, and P&L statements. Minimal documentation speeds up the loan verification process, allowing you to obtain a personal loan earlier than you had planned and begin your renovation work right immediately.

Conclusion

In conclusion, an instant personal loan for home renovation could be your best bet if you have the eligibility for it. Though you might also consider using your credit card, check the limit of your credit card and remember that exhausting more than 30 percent of your credit card limit can impact your credit score.  

But before we go, here is a gentle reminder for you. Be a responsible borrower who borrows only as much as needed and makes the repayment on time, without missing a single EMI. A loan is a debt, regardless of how big or small the amount, occasionally taking out a large loan with the expectation of repaying it in tiny sums can become a hardship. So, if you believe you are capable of repaying the loan on time, there is no harm in applying for a personal loan to fulfill your needs.

Maria J. Danford

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