Why Avail Personal Loan for Home Renovation and Improvement?

Most of us apply for a Personal Loan when we need emergency funds for a financial need. However, a Personal Loan can also be used for many other purposes. One such purpose is using the bank funds for home renovation.

Home improvement costs can indeed be mind boggling. And houses do continuously need repair and improvement. To that effect, the best funding option for you to consider while going for a renovation is to take a personal loan for home renovation.

If you wish to opt for one, we have discussed below some good options to consider. Prior that, let’s find out why apply for a loan for home renovation.

Benefits of opting for a personal loan for home renovation and improvement-

*You do not need collateral

To avail of a Personal Loan for Home Renovation you do not need collateral. Most lenders will extend their offer based on your credit score and bank account records. You don’t need collateral or guarantor for availing of a Personal Loan.

*The application process is much easier and the turnaround time is fast

When you go for trusted names such as ICICI Bank, PNB or an HDFC Personal loan, you can be rest assured of fast and swift processing of your personal loan application. Since India is turning towards digital banking, it makes most sense that you take advantage of online features and avoid standing in long queues at the banks.

We recommend you get your records checked by a bank official to see if you are eligible for a personal loan or not, otherwise your application may get rejected even on the online portal and you will have to run around for finding an ideal option for funding.

*You Can Take Care Of Unexpected Expenses

Even an expert in construction cannot give you the exact amount required for your home renovation. We are sure that you will start with in-depth planning before undertaking home renovation, but as the contractors keep getting added, your estimated budget will also shoot up. This is mainly because the exact kind of work required for your house cannot be estimated.

There is a chance that there was leakage only in one bathroom, but when the repairs begin, you may find out that even the adjoining room needs certain repairs. This is mainly because a worker can only give you an estimate. Having a personal loan helps you complete the required repairs without financial worries.

Best Personal Loan options for home renovation: Top picks

Looking widely at the market trends, the best loan offer for home renovation and improvement is the HDFC Personal Loan. Here are some reasons why you can consider getting a loan with HDFC.

HDFC is a leading player in the market. An HDFC Home Renovation Loan comes at attractive interest rates, wherein women borrowers enjoy concessional rate of interest. If you are home owner and seek a home improvement loan you can avail of Home Loan at interest rate starting from 8.00% to 8.50% p.a for loans up to Rs. 30 Lakhs, while for loans between Rs. 30.01 to Rs. 75 Lakhs, the interest rate applicable is between 8.25 to 8.75% p.a.

Eligibility for a HDFC personal loan for home improvement

If you fit the following criteria, you can fill up the application and get funds disbursed for your home improvement needs:

· You need to be aged between 18 to 65 years of age.

· You can either be a self employed or be a salaried individual

· You need to be an Indian resident

We also recommend that you get a co-applicant for more advantages while availing this type of loan. The reasons for this consist of the following:

· With a co-applicant, you can avail a higher loan amount.

· A woman co-applicant can help you in getting a better rate.

· Co-applicants do not necessarily need to be from family; hence getting a friend or an acquaintance with strong financial records can also work to your advantage.

Some other advantages of going for this option include the following:

· Both account holders and new customers can apply for this loan.

· Documentation is minimal and completely hassle-free

· You can make simple payments through monthly installments

· You get home improvement loans at par with Home Loan interest rate

Other options to consider:

If HDFC Home Renovation Loan does not work well for you, then you can also consider getting a loan from ICICI Bank. The ICICI Bank Home Renovation Loan starts at interest rate starting at 11.25% per annum. You can avail a loan of up to Rs. 20 Lakhs. The best advantage is that you require minimal documentation for getting a loan with them and no collateral needs to be put up. Once this loan is approved, you can get the funds disbursed within 72 hours.

Other leading lenders you can consider are:

· Citi bank

· SBI

· Axis Bank

You must carefully compare all the deals and choose the best match as per your budget. An online loans aggregator can help you make an informed decision.