At the start of the new year, you want to usher in new beginnings in your life. To this end, you want to give your home a makeover with some basic repairs and replacing some furniture and fittings. You can either take a home refurbishment loan or borrow a personal loan. Let’s see which approach is better.
Why a traditional home remodel loan is not a good idea
You may have heard of home refurbishment or remodel loans. These are offered by traditional lenders to home owners who wish to carry out restoration and repairs on their homes (villas, bungalows, apartments). You might be tempted to apply for this loan, but there are certain facts about it that you must be cognisant about:
This loan is offered only to home owners, and not to lessees or tenants to carry out small untenanted (involving civil or structural work) repairs
The property must not have any outstanding home or mortgage loans at the time of applying for the refurbishment loan. If an unpaid loan exists, a higher rate of interest may be charged on the remodel loan
The loan is disbursed in phases upon submission of a detailed project estimate and work plan. Every time a certain phase is completed, the lender releases the next part of the payment. Thus, you do not get a lump sum loan amount in your hands. To get the next payment, you must strictly adhere to the given timelines
The project estimates and plans must preferably be drawn up by an architect/structural engineer empanelled by the city or town’s municipality
You must submit a detailed set of documents for the property, your income, current residence, work details, etc. to the lender for them to assess your eligibility for the loan
Thus, it is not always smooth sailing to get this loan, especially if you wish to do the home makeover by yourself without any professional help. But it’s not the end of road as far as raising money for the project is concerned – just apply for a low interest personal loan from a leading online loan app.
Doing a home refurbishment with a personal loan
After considering the points listed above, you should ponder over getting a home renovation loan, aka a personal loan from a loan app for the home makeover this year. This is a good idea on several fronts, because:
The online loan app does not ask for proof of home ownership, or project plans or even cost and timeline estimates. Like all lending institutions, the app does not ask you why you are borrowing the money or whether you will use it in phases or in one shot. The app disburses the loan, no questions asked, based on your loan eligibility, credit score, source of income and your repayment history.
Once the app is satisfied with your financial and personal credentials, it disburses the low interest personal loan in just a few hours to your savings account. You can withdraw the money at once and start the project, from buying materials and furniture to hiring labour.
You need to submit just a few documents as part of the loan application. The set of documents is picked up from your residence by an app representative and submitted on your behalf. Upon verification of the documents, the app quickly approves the loan and disburses the amount. This is a quick turnaround from application to sanction, and you can start on the project without delays
Personal loans have a shorter tenure, so that you can repay it faster and become loan-free relatively quicker. You are not penalised for foreclosure
How to get the home renovation loan i.e. the personal loan
You can get a personal loan from a leading loan app, after looking for it on the Google Play Store or App Store (for iPhone users). Download and set up the app on your phone, then check your personal loan eligibility. Apply for the loan and submit your documents. Once verified, the loan is approved and the disbursed to your savings account. Repay the loan from your salary or business income every month till the loan tenure.
