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All about Personal Loan for Home Renovation

By Finserv MARKETS - Apr 12,2019
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About Personal Loan for Home Renovation

We are all aware of the various advantages of home loans. However, a home loan will only help you purchase your desired house and not take care of other expenses like renovation, design and decor, fitting your space with the best appliances, etc. Renovating a house can be very expensive, especially if you want to give it a truly alluring look. Your house is your personal space where you have the freedom to experiment and setup the furniture and designs as per your wish. Since you have already purchased a house, your budget might be very tight and additional financial assistance might be needed.

Due to several financing options available in the market today, you don’t have to make any compromises regarding the visual appeal of your house. Your desired changes could include increasing your bedroom space, an extra coat of paint, carpentry work, purchasing new furniture, installing top-quality tiles and the like. Most homeowners would like to spruce up their place before their housewarming party. That’s quite understandable as you want to impress your guests with the best possible setup.

Now, let’s understand how personal loans from India’s top Non-Banking Financial Companies (NBFC’s) like Bajaj Finserv available at Finserv MARKETS, can help you in doing so:

Personal Loans Over Home Renovation Loans

One of the biggest disadvantages of home renovation loan is that it’ll only fund up to 80% of your home renovation costs. This means you must spend a lot of money from your pocket, which is certainly not a feasible option. Additionally, you can only obtain this loan if the property is registered under your name. People who are nearing their retirement age will find it difficult to obtain this credit. Personal loans – on the other hand – are perfect for newly-married couples who are planning to move into a new house and for people approaching retirement.

Personal Loan for Home Renovation

Your personal loan is a type of unsecured credit, which can be used for a plethora of purposes. Hence, it’s also synonymously known as multi-purpose loans. Most Non- Banking Financing Companies (NBFCs) like Finserv MARKETS will not demand to know the purpose for which the loan amount was spent; rendering this credit an extremely attractive prospect.

However, this is not the case with home renovation loans, as financers will send officials to inspect your house and ask for details regarding how your loan money was spent. It doesn’t matter whether the house is registered under your name. Plus, you can spend the loan money in any way you want with complete freedom. This means your children can obtain this loan on your behalf as well and repay the amount later.

Interest Rates

Many would argue that interest rates for home renovation loans are lower than that of personal loans. While this is true to a certain extent, it largely depends upon your financer and various other factors. Since personal loan falls under unsecured loans category, you can expect the interest rates to be slightly higher. As you are not required to pledge any assets as security for personal loans, lenders are compelled to charge higher interest rates.

However, your personal loan interest rate will be drastically reduced if you possess a good credit score – which is determined by your past debt repayment record. A score of above 750 would mean that you are bound to receive attractive interest rates for your personal loan.

Here are some benefits of a personal loan

  • The approval is quick and within 5 minutes in some cases
  • Your loan amount will be credited to your account in 24 hours
  • Minimal documentation is needed for this type of loan
  • Applicants can receive a loan up to Rs.25 lakhs
  • The repayment tenure is flexible

Don’t wait and commence your home decorations by applying for Bajaj Finserv Personal Loan with Finserv MARKETS, today!

Also, read about how to get personal loan with low CIBIL score.

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522