A home is not only an abode that offers shelter, but also reflects your style, personality, and taste. At some point in time, you may feel the need for a home renovation to upgrade your place of stay. There may be various reasons to think so. Out of the many, a few reasons may be an upcoming wedding or festivity, or the need for turning your home into an office.
Whatever be the reason, you can consider redecorating your house based on your present needs and requirements. However, such home renovations are often costly, so instead of liquidating your important investments or life savings, you can consider opting for a regular personal loan or a pre-approved loan to meet your renovation requirements.
Understanding how personal loan works
A personal loan allows you to borrow the proceeds quickly. This loan comes with no restriction on end usage, meaning you can use the borrowed proceeds for any purpose at an attractive personal loan interest rate if your credit profile and score are good. Also, this loan type like any other credit option allows you to convert your borrowed funds into affordable EMI (equated monthly instalments) as per your repayment capacity.
For Instance, you can opt for a personal loan from IDFC FIRST Bank which offers lending amounts of up to ₹1 crore at attractive rates. Using these proceeds, you can conveniently redecorate your house, upgrade your furnishings, or get a facelift of your home. You can apply for IDFC FIRST Bank personal loans online through the mobile app or net banking.
Discussed here are some of the important benefits of opting for a personal loan to fund your home renovation plan:
Minimal documentation and quick approval
Today, many lenders come with a simple personal loan application process with minimal requirements for documents and quick approval based. You can apply for a personal loan online through the selected lender’s site by providing the necessary income and identity proof like your latest bank statements, driving license, Aadhaar card, PAN card, etc. However, ensure to meet all the crucial eligibility parameters for speedy loan approval.
Zero-end usage restriction
As the loan comes with the benefit of no restriction on fund usage, you can use the proceeds to meet all your requirements for any purpose may it be to remodel, renovate, upgrade, or repair your home. Additionally, you can also use the proceeds to buy gadgets and furniture for your home.
Zero need for security
As a personal loan is an unsecured credit option, you do not require pledging your home or any other asset or security to the lender. However, defaulting or missing out on timely personal loan EMIs may have other sets of consequences like credit score depletion, reduction in eligibility chances for other loan options, high penalties on a personal loan, etc.
Desired loan proceeds
Your personal loan eligibility depends on various parameters like your income, credit score, employment history, age, and repayment potential. The maximum allowed loan proceeds may differ among lenders with few lenders willing to offer an amount as high as Rs 1 crore. Note that to determine a preferable personal loan EMI, you can use an online personal loan amount calculator.
With a personal loan, you can customise your home according to your requirements without putting a burden on your finances. However, while this loan option comes with various benefits as listed above, you often may find it difficult to decide which bank is the best for a personal loan.