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Sunday, May 6, 2018

Get a Home Renovation Loan and Spruce up your Home

Most people find that purchasing a home is relatively easier than renovating one. As people are aware of how much they need to invest while buying a home for themselves, they prepare for the budget accordingly. When it comes to renovation, one good idea is to take out a home renovation loan and see how you can manage expenses.

Though there are some factors with home renovation that can be calculated immediately, there are some things that need a professional estimate. In this case, taking a home renovation loan is the best thing you can do to make your dream come true.

Plan your Budget for each Stage of Home Renovation

If you’re thinking of renovating your home, you should plan your finances. In order to plan your budget for each stage of home improvement, figure out a plan of what kind of renovation you want to do for your home. It can be a complete and total renovation,or just some specific parts of the house.
Once you finalise what you want to achieve, you need to start planning about what to do. When you divide the home renovation process in different parts, you can make a calculation of the cost involved for each part. Ensure that your budget for home renovation is at least 10% more than the total cost you have calculated.

Advantages of home Renovation Loan

This is one of the best options on loans which one can take to do home renovation. Below are some of the advantages of taking a home renovation loan.

You can take a home loan for a large amount; In fact, home improvement loan is best for people who have a bigger renovation in mind.

One of the best advantages is that home improvement loan interest is low in comparison to other loans.

The duration for the loan can go up to 15 years.

Under Section 24 (B) of Income Tax Act of India, you can even get home improvement loan tax benefit with this type of loan.

Interest Rate Type of Home Improvement Loan

Most of the banks offer two types of home improvement loan interest rate. The types of interest rate associated with home improvement loan are fixed and floating interest rate.
Fixed interest rate: In this type, the rate of interest the borrower needs to pay is fixed before approval of the loan.

Floating interest rate: Floating rate interest is the rate of interest which is associated to the rate of prime lending of the financial institution or banks.

Other Loan Types

If your budget isn’t that high, you can go for other options. Apart from home renovation loan, a personal loan is another option that can be easier to get. You need to provide some basic documents to get a personal loan for home improvement. A gold loan or loan from any of your friends or family members can also help with home improvement so that you meet your budget. But whatever loan type you take, make sure to plan your budget so that you can afford repaying the loan amount during the specified time frame.

How to Apply for Home Improvement Loan?

Banks and other financial institutions offer home improvement loans to people to help in remodeling their house. Applying for one is pretty easy with the online application process. You can fill up a form online with all the necessary details on their websites. Otherwise, you can visit the institution personally and apply for one. Once all your details and documents have been verified, your loan is more than likely to get approved.

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