This is not the first time when you are thinking of getting your house renovated.
You cannot just change your place once in every one or two years as it is a major investment from your side. So, going for some renovations of the interior décor can actually change the look of your house to a completely new extent to be sure and honest!
With the evolvement of the modernized home furnishing designs, it is always good to change the way you are living right now. To help you cover all your major requirements over here, a personal loan is a key towards a successful home décor project. This form of banking loan is absolutely a great option and also a proven easy way to get some cash on hand, which you can repay effortlessly within monthly installments.
Why choose a personal loan for home décor projects?
Now, you must have this query in mind. With so many loan options and even the option of borrowing money from your family or friends, why do you even bother getting hands on personal loans? Well, the answer is simple. First of all, a personal loan is an unsecured loan platform. It means there is no need of any collateral security to be placed with this form of a loan. On the other hand, with the personal loan by your side, you can use it for anything possible.
In the case with other loans, you are restricted to use the money only for some of the allotted reasons. For example, you have medical loans to be used for covering medical expenses only. Then the student loan is for assigning the educational based fees only. This is not the case with a personal loan. With the help of this loan amount, you can use it for any case and without even worrying about the spending. So, there is no restricting on where you have to spend the amount. So, using a personal loan for covering all your home décor based requirements seem to be a clever task. You will come to learn more about those loans from libertylending right now.
Things you need to know about personal loan
There are so many forms of loans available, all designed to match the needs and requirements of every person seeking to just apply for these loans. One such option that you can cater to from the banks is a renovation loan.
- This loan will cover the renovations and repairs associated with residential property. In case, you are wondering for the best loan to cover home décor, you can get hands-on one by taking advantage of this facility, as procured from personal banks.
- This loan disbursement is used to repair and renovating the house and for carrying out civil work like plumbing or paint. This loan is not suitable to be used for conducting furniture based works.
- It is mainly because conducting furnishing work will not fall under civil work category. Being said that, there are so many banks offering you with such an option. So, be sure to be aware of this loan and its major aspects.
Get to some factors now
While purchasing personal loan for your home décor requirements, there are certain factors that you care to keep in mind. In case, you are heading towards banks or any other financial institution to apply for personal loans, make sure to keep these points in mind before filling up the application form.
The loan amount you are eligible for
There is always a necessity to check on the entire eligibility before you get hands-on the home loan. The total eligibility will often rely on repaying capacity, as determined by the disposable income or monthly surplus.
- Here, you have to take account of the liabilities, assets, income stability, total income of the month and spouse income.
- Banks are in need of assurance that loan person is the one to repay loan amounts, right on time.
- You are often eligible for the higher loan amount in case the monthly disposable income is towards the higher side.
- Bank is known to assume that around 50% of the monthly income is made available for the repayment value. The loan amount also depends on interest rates for a tenure period.
Documents that you have to care about
To apply for a personal loan for just furnishing home, make sure to keep certain documents ready near hand before you submit the same to the bank or any of the fintech company. Some of those documents are legal documents associated with a home purchase, properly filled out the application form, recent photo, latest salary slip from the firm as authenticated by an employer, and proof of identity and the residence certificate. You might further have to provide the bank statements for the last six months and the balance sheet, to prove that you are worthy of repaying the amount you are aiming for under loans.
Get the loan specifically for the home décor
It is mandatory for you to take any of the home improvement loans from bank, which has offered you earlier with housing loan. Always be sure that to use a personal loan for covering home decor or furnishing necessities, the equity needs to be higher. The higher your equity gets, the higher will be the quantum of your current loan eligibility.
- Most of the time, the loan tenure associated with home renovation will last for about 15 years.
- The EMI of this section is determined based on tenure, as fixed by bank or even the fintech company, along with the applicable interest rates.
- It is always mandatory for you to apply for a home improvement loan, in place of a personal loan to some extent. It is mainly because of the interest rates, which are much lower in home improvement loans than personal ones.
Go through all the options, calculate the tenure period and rate of interest, before you can finalize on the type of loan to apply for, in terms of home décor based venture out here.