Whether you live in an ancestral home or a newly purchased one, some renovations or changes are needed with time due to wear and tear. Often, a change may also be required to make the home more comfortable, modern, and livable for the family.
You may not always have the money at your disposal to pay upfront for all expenses needed for a renovation. Liquidating your hard-earned savings for a spruce job doesn’t seem financially prudent either.
There are many ways to get your renovation project funded – you can get home repair loans, conduct a garage sale, get a top-up home renovation loan, and more.
Here are some quick and simple solutions you could try:
Garage sale/online sale
If you are overhauling your house for contemporary needs, there is a good chance you may be getting rid of a lot of stuff, including white goods, kitchen appliances, wooden items such as chairs, tables, cabinets, etc.
Rather than paying someone to discard them, you could sell a lot of things you don’t need through a garage sale or list it for sale online. Yes, the money you make may not be enough to fund your entire project, but it can surely help to an extent.
If you are making small changes to your home, like installing a new wardrobe, spending via your credit card could be a good option. The amount could easily be converted into three to six-month EMIs depending on your budget. However, it is important to note that the interest rate on credit cards is one of the highest among all loan products. It could range from 15% to 25% or even more, making the financing very expensive.
A personal loan for home renovation is one of the quickest and most affordable ways to fund your project. Such a loan offers complete flexibility to manage the repayment terms. Whether it is a small fix-up job or a full-scale remodeling, you can avail of a house renovation loan that will allow you to renovate your home just the way you want to without cutting corners.
If you have an existing home loan, you could avail of a top-up loan for your renovations. The eligibility of your top-up loan depends on your current debt exposure with the home financing company and credit risk. If a good chunk of your home loan has been repaid, you may be able to get as much an amount you need.
The advantage of a top-up loan is that you do not need to go through any additional documentation or processing. The loan amount gets added to your existing loan. A top-up loan, however, maybe 1% to 2% more expensive than your existing loan. And it increases your home loan tenure proportionately.
A home renovation loan is one of the easiest and economical ways of remodeling your home. Check out a personal loan for home improvement from Tata Capital, which is affordable, convenient and absolutely transparent.