Planning to take a home renovation loan? Get started with these 5 steps
4 min read . Updated: 31 Dec 2021, 11:02 AM IST
PremiumIf you are planning to apply for a home improvement loan, consider the following important factors for a pocket-friendly experience.
As the famous proverb says, home is where the heart is, and your living space is like your partner for a lifetime. Today, when monotony, discomfort, and work-from-home are all significant concerns, remodelling your home can be a super idea to add more value to your life. A home renovation loan helps you upgrade your home without depleting your finances. With a personal loan for home renovation, you can also manage urgent home repairs comfortably.
If you are planning to apply for a home improvement loan, consider the following important factors for a pocket-friendly experience.
1. Set your home improvement goal
Remember that getting funds is one part of the journey when considering a loan. You also have to repay the loan, and there is a borrowing cost. So, figure out the essential requirements at your home and apply accordingly. While top lenders offer up to Rs. 25 lakh as the renovation loan amount, borrow only what you consider usable and essential.
There is no restriction to the end-use of a personal loan for home improvement, so you can use it to meet the following goals and more:
- Paint your house for a better look and feel
- Add a new concrete structure like a garage or a patio
- Convert a balcony or attic into a room for remote work, an office, or a kid’s room
- Redo your kitchen and bathroom with better fixtures, plumbing, or repairs
- Landscape green spaces or set up a garden on the terrace or balcony
- Replace tiles, doors, or windows
- Add a home security system and upgrade to smart appliances and settings
With a personal loan for home renovation, you can give your home a brand-new look and increase its functionality at the same time. As a result, the value of your home as an asset also increases.
2. Explore the market and look for a pre-approved offer
Compare different lenders and their offerings to make an informed borrowing decision. Find out about the interest rates and features that can add value to your experience. These may be doorstep pickup of documents or 100% online protocols for applying 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 experiences with a lender and give you an edge when it comes to fast access to funds and minimal paperwork apart from a competitive interest rate. You can save more and execute your home renovation plans stress-free with such offers.
3. Find a lender with simple eligibility criteria
Today, loan approval has become much easier, and the same is true of a personal loan for home renovation. However, different lenders have varying terms, and not meeting these eligibility parameters has negative consequences. To keep your loan application from getting rejected, look for a lender that requires you to qualify for the loan on simple terms. You can quickly get a home renovation loan with the best lenders if:
- Your age falls between 20 and 67 years
- You work full-time in a public company, private organisation, or an MNC
- You are a permanent, residing citizen of India
- Your CIBIL score is 750 or more
- You match the city-based minimum income requirements
4. Check the cost of the loan and pick the best terms
Budgeting 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 fees
- EMI bounce charges
- Statement charges
- Secure fees for online application
- Part-prepayment charges
- Foreclosure charges
- Penal interest on missed EMIs
Make sure the lender you choose is transparent about such charges and offers a competitive interest rate too. This way, you can ensure that you plan for all these costs and aren’t taken by surprise at a later stage.
5. Plan your repayment before you proceed
Rather than shooting in the dark, calculate your EMIs and plan repayment even before you apply. This way, you can make sure your EMI commitment doesn’t stress your finances. With the best personal loans, you can enjoy a long tenure of up to 60 months. This reduces your monthly instalments. However, you can reduce your interest outgo by choosing a shorter tenor. Use an EMI calculator online and compute varying EMIs for different loan amounts and tenors. This way, you can select the option that best suits you.
With this plan of action in place, you can go ahead and make your home improvement dream come true! For a stress-free experience, consider the Bajaj Finserv Home Renovation Loan. It offers an ample sanction with zero hidden charges and a long tenure of 5 years. You can qualify for this loan easily by submitting only a few documents. With its Flexi loans facility, you can lower your initial EMIs by up to 45%. So, check your pre-approved offer without delay and apply online to give your home an upgrade!
Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in creation of this content.
