During the last two years, House Renovation Loans have increased in popularity. This is because a house demands renovation at regular intervals. After all, the aesthetics and comfort are also concerning factors like the construction and location. However, one needs to meet stringent eligibility criteria to avail of the loan. Also, the credit limit is low here.
In this regard, personal loans offer high credit limits at an affordable interest rate and easy-to-meet eligibility parameters.
Factors to consider to avail a Personal Loan for Home Renovation
The personal loan sector is anticipated to maintain a substantial growth of 10% in the country between 2020-2025. Intending borrowers are interested in such unsecured credit options and choose them to finance their diverse requirements, such as funding vacation, wedding, education, home renovation, etc.
Since unsecured credit options like personal loans do not have any end-use restriction, borrowers can utilise such advances as per their needs. Whether one wants to renovate a particular area of their residence, repaint a property etc., these funds will allow them to do so.
Nevertheless, before making a personal loan application, individuals must ensure checking the lender-specific eligibility parameters and submit necessary documents without fail to enjoy a hassle-free credit approval.
Eligibility parameters and documentation
Just like House Renovation Loans feature certain eligibility parameters, personal loans also come with lender-specific qualifying factors, as mentioned below-
- Applicant’s age must be within 21-67 years
- One should be a salaried employee in a reputed MNC or private organization
- Individuals applying for a personal loan must have a CIBIL score of 750 or higher
Besides, borrowers need to produce the following documents-
- KYC documents
- Salary slips for the previous two months
- Financial statement of last three months
- Employee ID card
However, one must note that they can also apply for a digital personal loan from reputed financial institutions like Bajaj Finserv during monetary emergencies. With no collateral, extensive documentation, and processing fees, borrowers will get the fund disbursed into their account at the earliest.
Moreover, individuals need to maintain a credit utilization ratio and pay off existing debts on time to improve loan eligibility. One who successfully meets these requirements can give their house a makeover with an affordable home improvement loan.
Other than eligibility parameters, individuals need to factor in other aspects that will help them avoid interruptions during loan approvals, ensuring a smooth borrowing experience.
Determine loan amount
Before planning to apply for a personal loan, individuals must carefully calculate the loan amount they require. It will allow them to understand whether they need short-term unsecured loans or more funds in the form of top-up advances.
In this regard, borrowers can also use a Loan EMI Calculator to know the eligible amount as per their profile and also determine EMIs, interest outgo, and overall borrowing cost beforehand with an EMI calculator. This way, borrowers can pick the most suitable option that meets their financial requirements.
Select appropriate lender
After selecting the necessary amount, borrowers must perform thorough market research and compare different lender and their offerings before making an informed decision. In addition, one needs to check aspects, such as loan amount, personal loan interest rates, tenor and the likes, that can add value to their borrowing experience.
Besides, borrowers can also use pre-approved offers extended by leading NBFCs like Bajaj Finserv to apply quickly and conveniently. Such offers are entirely based on your credit history and relationship with the previous lender. These offer help avail funds quickly with minimal paperwork. Moreover, these exclusive offers are available on a wide range of financing options, such as personal loans, business loans, credit cards, etc. Therefore, customers can check their pre-approved offers by mentioning their name and contact information.
Check overall borrowing cost
Preparing a proper budget is crucial to making a suitable borrowing decision. Individuals must look beyond interest rates when applying for House Renovation Loans or personal advances. The additional costs to check when applying for credits include-
- Processing fees
- Part-prepayment and foreclosure charges
- EMI bounce charges
- Penal interest charges and more.
One must ensure that the lender is transparent regarding these charges and offers attractive interest rates as well. This way, applicants can include their charges in the borrowing cost and not face repayment burden later.
Therefore, by considering these factors when applying for House Renovation Loans or personal loans, individuals can successfully fulfill their home renovations without exhausting their savings.