5 Home Improvement Finance Options To Consider
Change is the only constant. Everything needs to change with changing times and your home is no exception. With time you need to make improvements to your home either because you want to increase the accommodation area or because you want to renovate your home as per the latest trends. Whatever be the reason for making alterations to your home, you need considerable funds for any activity you undertake. Even the addition of a single room to your home costs lakhs. Some of you might use your accumulated savings for home improvements but most of you rely on financing options available in the market. But when it comes to financing options, do you know which ones are available for home improvement purposes?
If you don’t, here are 5 of them which are quite popular and also easily available –
- Personal loans
Personal loans are multipurpose loans which can be availed for your home improvement needs. These loans are the most easily available loans which do not require any security as collateral. You can apply for personal loan online and get funds instantly. The loan is granted based on your income and financial status and because it is an unsecured loan, interest rates are on the higher side.
- Loan against property
A loan against property is also a personal loan but it is offered against the value of a property which is mortgaged with the lender. If you have a property in your name, you can mortgage it with the lender and avail funds against its value. The loan is a secured loan and allows a high amount of finance since the value of the mortgaged property is considerable. Interest rates are low and the loan can be used for any home improvement need.
- Home loans
The popular home loans are not only meant for purchasing a home or a plot of land. You can use home loans for home improvements and renovations too. Home loans have low interest rates and longer repayment tenures. As such, a home loan might prove an affordable option for your home improvement needs. This loan is also a secured loan and offers funds against the mortgage of your home.
- Construction loans
Construction loans are also available which have a very specific application. If your home improvement includes construction of additional rooms, floors or anything else, you can avail a construction loan. The loan is disbursed in tranches depending on the stage of construction completed. Interest rates are low, the loan is secured and the loan quantum is high.
- Top-up loans
Top-up loans are available for existing home loan borrowers. If you have already availed of a home loan you can request your lender to offer you a top-up loan which means an additional loan. This top-up loan is available for home renovations and improvements and has a reasonable rate of interest. In fact, for existing home loan borrowers, top-up loans are the best option for financing home improvements.
Also Read: Tips For Eco-Friendly Home Renovation In India
Your home is your sacred place and you should make it as comfortable as possible. You can consider any one or more of these financing options and make your home your happy place.