Lately, the number of people who want to improve their home through several home improvement projects has seen an increase. Analyzing this change in trend, several banks and financial institutions have come up with a new financing scheme called home improvement loans. These loans can be used based on the residual home loan amount to make the necessary changes to your residences.
Here are some of the main advantages that a home Enhancement The loan can offer you
increase Outlook of your property
Haven’t you always wanted to improve the look of your home? The addition of an elegant wooden floor, some textured painting and improved lighting are some of the common requests for home renovation. By using a home equity loan you can do all of this and more!
Increase the market value of your property
The improvement you make in your home increases the value of your property in the real estate market. In addition, financial institutions are likely to extend a home equity loan for the exact same reason as they consider this a win-win situation.
For example, you have a house worth Rs.50 lakh on the market. If you choose to improve your home by adding a modular kitchen or an extra guest room, the price of the property will certainly increase.
Is Personal Home Renovation Loan A Good Option?
A personal loan usually comes with high interest rates; much higher than the rates of traditional home improvement loans offered by most banks. But there are many advantages associated with a personal loan, such as no collateral, easy approval and higher loan amount. So, evaluate your needs and choose a loan that best suits you.
How can I get the home renovation loan?
Having a home equity loan is fairly simple if you already have a loan in place with a financial institution. New loan applicants, however, will have to go through the application process from scratch.
To get a sanctioned loan, you must submit a quote on the amount needed to complete the renewal. The lenders will evaluate the costs you mentioned, along with the value of your property and your repayment ability before sanctioning the loan on your behalf.
In summary, it can be said that a home equity loan is a home owner’s next best friend as it comes with cheaper interest rates than that of a personal loan. So plan ahead and make a carefully thought out decision before applying for one.