How to Take Care of Home Repairs with a Personal Loan
Home repairs and renovations may be sudden or urgent, depending on various factors. These may crop up suddenly and necessitate significant expenditure on your part. So how do you raise funds for the same without depleting your investments and savings? It is possible if you submit an application for loan in banks to raise funds swiftly for this purpose. Here is a guide on covering these costs with a personal loan and some other associated costs.
What Home Repairs May Entail
Home repairs may be extensive procedures that require a sizable amount of time. To give you an example, it may pan out as the following:
• 2-3 weeks or even 1-2 months is the average when it comes to small home repair or renovation projects.
• 3-6 months may usually be needed for projects that cover extensive remodeling and renovations.
• Bigger projects may take anywhere around 6-12 months as well, and usually cover the whole house.
What about the costs? Budget anywhere between Rs. 10,000 and Rs. 50,000 for minor jobs including some painting, small repairs here and there, and so on. However, if you bring in kitchen and bathroom renovations or remodeling into the mix, in tandem with flooring, room jobs, and more, then it may come out to approximately Rs. 1-3 lakh or even higher. Now if you go for the whole hog, i.e. extensive repairs and remodeling of your home, then you may have to budget anywhere from Rs. 5 lakh and upwards.
What are the major repair or renovation tasks that you may have to take care of? Here’s looking at the same below.
| Plumbing- Drainage inspection, pipeline replacement, fixing leaks | Electrical Work- New electrical fittings, lighting, appliance points, replacing wires and cables, installation of MCB and other work | Window and Door Work- New door or window installation, frame changing or repair, anti-damp treatment, insulation treatment, painting and aesthetic changes | Ceiling & Wall Jobs- Painting, anti-damp treatment, fixing cracks and other issues, wallpaper installation, false ceiling, and other decorative additions | Flooring- New flooring or repair of existing one | Interior Work- This includes buying or replacing furniture, fixtures, gadgets, and so on |
Here is a guide on how you can cover these expenses with personal loans.
How to Cover Home Repair and Renovation Costs with Personal Loans
There are a few aspects that you need to keep in mind if you wish to quickly get a personal loan to meet home renovation and repair expenses.
• You can expect fast personal loans online approvals and disbursals in case you meet the eligibility criteria and provide all documents without missing out on anything.
• You should remember that personal loans do not require any security or collateral. You can apply online easily by filling up the application form and uploading your documents.
• Keep your KYC documents (address and identity proof) ready along with your income proof (bank statements for the last six months usually and your salary slips/Form 16/income tax returns).
• You also have to set up your online repayment modes and agree to the terms and conditions once the bank sanctions your approved loan amount.
• Always check your credit score (should be 750 or higher) before you apply for these loans in order to enhance your chances of loan approval.
• Compare interest rates across multiple lenders in order to find the one offering the best and lowest-possible rates.
• Check the loan document carefully in order to check the terms and conditions carefully, including the loan tenure, interest rate, monthly EMI, mode of repayment, penalties for defaults, processing fees and other charges, etc.
• Always apply for a loan amount that you actually require without going overboard and choosing a higher amount. You can do this on the basis of estimates given by your interior designer or contractor.
• To be safe, you can apply for 20-30% more than the initial estimates in order to fund your home renovation and repair costs.
• Check your financial circumstances and whether you can afford the personal loan or not. Use an online EMI calculator and see whether you can comfortably repay the same for your desired amount. This will also help you choose the right tenure for the loan.
• A higher tenure equates to a lower EMI but significant interest costs. While the EMI may be higher for a lower tenure, it will lead to a reduced interest outgo overall.
Conclusion
These are some of the steps which you can take in order to smoothly cover your renovation and repair costs with a personal loan. Make sure you apply smartly for the right amount in order to ensure proper funding for the job. On that note, here’s to sprucing up your home and carrying out necessary repairs without any hassles.
FAQs
1. Can I take a personal loan for adding a new floor or building rooms at home?
Yes, you can take personal loans for any purpose, including home repair and renovations, without any restrictions on the usage of the funds.
2. What should I check before applying for a personal loan?
Check the reputation of the lender along with comparing interest rates and other terms and conditions. Also check the eligibility criteria and whether you fit the bill before you apply.
3. Where can I apply for a personal loan?
You can apply for a personal loan online at your lender’s website or mobile app if you wish. Alternatively, you can also visit your nearest bank branch for this purpose.
