To renovate a home can be a daunting task especially if you are short of funds. You may consider opting for a personal loan to take care of home renovation expenses. Most financial institutions and NBFCs will offer higher loan amount and affordable interest rate to borrowers with a credit score of 750+ or more. You get to negotiate your loan terms with the lender and create a convenient EMI structure to get started.
Here are few things to consider before you opt for a personal loan.
1) Eligibility Criteria
It must be understood that different lenders have different eligibility criteria. You can check them by using the eligibility calculator on lender’s website. Or, you can walk up to the lender and discuss with their representative.
You must know the interest rate provided to you by lender for home renovation on your loan. This is important, so you can plan your repayments and ensure to pay off the loan on time. To check repayments you can use the EMI calculator on lender’s website.
3) Repayment Capacity
It is advisable to have a stable source of income such as a job or business. This will give confidence to the lender that you can pay off the loan easily and on time. This will also help you win the trust of the lender and they will be willing to offer you convenient repay options.
Additional Reading:: 3 Things to Consider Before Applying for a Home Renovation 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.