As we start the new year with a fresh array of hope, a lot of us might be actively considering the option of repairing and renovating our homes to give them a fresh look. However, one thought which must have pondered your mind is how can you finance the development, as it is general knowledge that home renovation projects can get very expensive in a short period of time.
Thus, in today’s article, we will share with you a financing option that will not only help you renovate your house but also make sure that you do not burn a hole in your pocket.
Features of a Personal Loan
Let us look at some of its most prominent features.
- Instant Approval
If you have ever searched for a traditional loan in India, you are well aware of the fact that most of them take anywhere from 4 business days to 1 month to get approved, and you finally receiving the loan amount in your account. While this timeline might look insignificant at first glance, it has a large impact on your ability to seize opportunities, as it essentially limits you from receiving the money in your account when you need it the most.
On the other hand, most banks & NBFCs or private organizations in India come with an instant approval feature meaning that right from the moment you file your loan application, all the way to you receiving the loan amount in your bank account, you will be spending a maximum of 24 to 48 business hours.
- Flexible Repayment Plan
Another pain point of traditional loans is the fact that most lenders predefine both the EMI amount you will be required to pay every month, along the date of repayment. While this is an incredible strategy for the lender, as they are essentially minimizing their risk on the loan, it puts the borrower in catharsis in terms of managing their personal finances.
On the other hand, in most banks & NBFCs or private organizations, you are given the opportunity to fine-tune both the EMI amount you would be comfortable in paying every month along with its date, such that you can take better control of your personal finances.
Why Is a Personal Loan Better Than a Home Loan?
You must be asking yourself why is a personal loan better than a home loan, and the answer to this can be accredited to various reasons, the most significant of which are as mentioned below.
- A home loan in India is categorized under traditional loans meaning that they arrive with long timelines, offline processes, and more, all of which make them a hassle to apply and avail of its services.
On the other hand, personal loans in India arrive with the features mentioned above, along with a completely online application process, meaning you can apply for the loan right from the comfort of your home and get the loan amount in your bank account in no time.
- The terms and conditions that arrive with a home loan application mandates that you can use the loan only for the mentioned purpose, that is either for building a new home or renovating an existing one, and that is why often they do not cover all the miscellaneous expenses associated with a repair and renovation project. Along with this, in most cases, the loan amount is directly credited to the account of the contractor you have hired, thus further minimizing your choices.
On the other hand, the rules and regulations of a personal loan state that you can use the loan amount for any purpose you want, meaning you can finance each and every aspect of your renovation project with the loan amount. Not only does this option increase your spending ability, but it also gives you immense freedom in terms of navigating the road for your home renovation project by yourself.
Conclusion:
Taking a personal loan for financing your home renovation and repair project can be by far your best financial decision. Not only are the features of a personal loan more borrower-oriented, but it also equips you with the ability to avail the features of a loan without burning a hole in your pocket.
So go ahead and apply for a personal loan today to finance your home renovation project. All the best.
