A Personal Loan is an all-purpose loan. It can be used for any personal reason at all without prior mentioning the same to the lender. You can use it to pay the downpayment for your house, get it renovated. You can also use the borrowed capital for various other reasons: get hitched in style, paying off your credit card dues and settling up other such expenses. However, check the below-mentioned steps which you need to follow before you approach any lender for the loan.
1) Find out a good scheme: Whether it is a Personal Loan or any other loan, the first crucial step is to find out a good scheme. You can search for different schemes and compare them based on your requisite. You can compare their interest rate, the flexibility, the repayment tenor available and based on the maximum amount being offered.
2) Check the eligibility: The second step is to compare the loan eligibility and the eligibility criterions (both are different things). Use the Personal Loan eligibility calculator to check the amount you are eligible to borrow as loan and plan accordingly. Before that, check the criterions and ensure that you can qualify them.
3) Ask as per your eligibility and capability: The first reason you should know your eligibility is, it helps you plan your expectations. You should try and limit your loan expectations within 40% of your eligibility.
4) Go for a shorter tenor: Last but not the least, Personal Loan for home renovation is unsecured in nature, better paid at the earliest. Hence, keep the repayment tenor short.
Read Also: Rules to Follow While Taking a Personal Loan
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.