Redecorating your home with new furniture can be exciting. Not only does furniture make our lives more comfortable, but it can serve as storage and allow you to express your sense of style.
However, furniture is often a big-ticket purchase. And sometimes, you may not have adequate funds to cover the costs. For instance, you might have your savings locked in investments. Or, you might have bought a new house, and all your funds might have gone into the down payment.
In such cases, you can take a personal loan for renovation.
Can you buy furniture with a loan?
Yes, you can! Personal loans are multi-purpose, and you can use them freely. They come in handy whenever you need liquid funds for immediate expenses. You can use them for anything from repaying debt, going on a vacation, medical emergencies, and purchasing expensive furniture or gadgets.
Loans for personal use are unsecured credit that you can take without pledging any security or collateral. They also have relaxed eligibility criteria and quick disbursal.
When is taking a loan a good option?
If you are moving into a new house and do not have the means to move old furniture, you will have to buy new beds, chairs, and cupboards. Furnishing an empty home can cost you lakhs of Rupees. Whether you want to purchase ready-made furniture or have it custom-made, you will have to incur substantial costs.
Sure, you can use your credit card. However, credit cards charge a much higher interest as compared to personal finance. Hence, taking a home renovation loan for furniture is more viable than using a credit card.
Things to consider before applying for a loan
Before you take a personal loan for furniture buying, you should consider the following:
- Look for affordable interest rates: Selecting the right lender is crucial. Before you apply, research and compare interest rates in the market.
- Borrow only the amount you need: Make a list of furniture you need to buy, then estimate the total cost. This sum will be your loan amount. Avoid overborrowing by all means. Limit your purchase to essential items.
- Assess your loan repayment capacity: You can use an EMI calculator to calculate your EMI and see if it is within your budget. If required, reduce your loan amount.
- Maintain a high credit score: Your loan eligibility will increase if you have a high credit score. Your loan will be approved quickly, and your lender may offer your more affordable interest rates. Ideally, your credit score should be 750 or above. But if you have a low score, wait for it to improve. Else, get someone who has a high credit score to co-sign your loan.
Additional Read: 5 Tips for Salaried Individuals Availing for Personal Loan
To sum up
A loan for personal use can help you buy the furniture you want. Assess your needs, borrow accordingly, and maintain a high credit score to make your loan approval process smoother.
Do you need funds for your immediate expenses? Tata Capital offers you easy loans at attractive interest rates. Visit our website to check your personal loan eligibility and apply online.