Lately, the number of people looking to improve their residences through several home improvement projects have seen a rise. Analyzing this change in trend, several banks and financial institutions have come up with a new financing scheme called home improvement loans. These loans can be availed of upon your outstanding home loan amount to carry out the necessary modifications to your residences.
Here Are Some Of The Major Benefits That A Home Enhancement Loan Can Offer You
Enhance your Property’s Outlook
Haven’t you always wanted to improve the way your house looks? Adding an elegant wooden flooring, some textured painting, and improve the lighting are some of the common home renovation requests. Using a home improvement loan you can do all that and more!
Increase the Market Value of Your Property
The improvement you make in your home increases the value of your property in the real estate market. Also, financial institutions are likely to extend you a home improvement loan for the exact same reason as they consider this a win-win situation.
Say, for instance, you have a house worth Rs.50 lakh in the market. If you choose to improve your home by adding a modular kitchen or an extra guest bedroom among others, the price of the property will certainly rise.
Is Personal Loan for Home Renovation a Good Option?
A personal loan usually comes with high-interest rates; much higher than the rates of traditional home improvement loans offered by a majority of the banks. But there are plenty of benefits associated with a personal loan, for instance, no collateral, easy approval, and higher loan amount. So, evaluate your requirements and choose a loan that best suits you.
How Can One Avail Loan for Home Renovation?
Availing of a home improvement loan is fairly easy if you already have an outstanding loan with a financial institution. New loan seekers, however, will have to go through the application procedure from scratch.
To get a loan sanctioned, you’ll need to submit an estimate on the amount you’d require to complete the renovation. The lenders will evaluate the costs you’ve mentioned, along with the value of your property, and your repayment capacity before sanctioning the loan against your name.
While summing it up, one can say that a home improvement loan is a homeowner’s next best friend as it comes with cheaper interest rates when compared to that of a personal loan. So, plan ahead and make a carefully weighed decision before applying for one.
Arwind Sharma a passionate writer and he is the author of this tutorial on finance and closely associated with financial comp