Complete Guide on Getting an Instant Personal Loan for Home Renovation
People like personal loans because they are easy to get and don’t require much paperwork or collateral. They help in emergencies when money is tight.
Most lenders now offer online instant personal loans. So, you can get cash in your account in minutes. Since personal loans can be used for anything, many homeowners use them to fix up their homes.
You might wonder if the high-interest rate and fees for a personal loan to fix up your house are worth it. Many people can’t afford to fix up their homes. Even small changes can cost a lot. You can save up quickly before getting a loan to fix your house. It’s easy and quick to get an instant personal loan. Let’s examine details about instant personal loans to fix your house.
Why Should You Renovate Your Home?
Home renovation is a way to improve the quality of your life and the value of your home. Both of these will be useful in the long run. Not everyone can afford the renovation costs of their homes. Hence, people can use instant personal loans to fix up their homes. Before you apply for a personal loan, you should understand why it’s important to fix up your home.
- Safety Reasons
This is the main reason why people make changes to their homes. A house built even ten years ago might not meet today’s safety standards if you live in an area with many earthquakes or tornadoes. Some walls, roofs, and stilts need to be rebuilt because they are no longer safe.
- Increase Aesthetic Value
Almost everyone wants to make home changes to stay updated with the latest design trends. Homeowners like to make their homes reflect their identity by changing things like flooring, bathrooms, kitchens, wall colours, windows, and furniture.
- Festive Occasions
When Indian families get ready for important events like weddings and engagements, they often whitewash and repaint the outside of their homes.
Getting an Instant Personal Loan to Renovate Your House
Getting an instant personal loan for home improvements is the best way to pay for a renovation. There are a lot of banks and non-bank financial companies (NBFCs) that offer loans for home improvements. Most of these are unsecured loans. This means that the customer doesn’t have to use any property or collateral as security.
For home improvements, it’s always better to get a personal loan than to use your savings. It’s also better than using a credit card to pay for your renovation. Credit card loans can have high-interest rates and lead to more debt, so an instant personal loan is the best option.
Key Features of Instant Personal Loans for Home Renovation
Simple and Quick
Instant personal loans are a quick, easy, and convenient way to get cash for home improvements. The whole process is quick, easy, and doesn’t cause any trouble. What else? Your application is approved as soon as possible, and the money for the loan is sent to you within 24 hours.
Good Interest Rates
Good interest rates are given on instant personal loans today. It’s best to do a lot of research, look at the different offers, and compare them before making a final decision. Before choosing a lender, it’s also important to understand the terms and conditions, prepayment/foreclosure fees, and types of interest rates (floating or fixed).
Flexible Repayment Tenure
You can get an instant personal loan with flexible payment plans that best fit your financial needs and goals. So, you can be sure you can handle having enough money to make your EMI payments on time.
Eligibility Criteria for Instant Personal Loan
|Age||Applicant:Minimum Age: 18 yearsMaximum Age: 65 years|
|Resident Type||Resident IndianNon-Resident Indian|
|Residence||A permanent residenceOr a rental home where the applicant has lived for 12 months.|
|Credit score||CIBIL Score > 700|
Documents Required for Instant Personal Loans
Before you apply for a personal loan, you will need some paperwork. Here is the list:
For a salaried person:
- Employment proof
- Salary slips of last 3 months
- Account statement of last 3 months
- PAN card
- Address proof (Voter ID card, passport, Aadhaar card, driving license)
- KYC Documents
- Identity proof (Aadhaar card, driving license, passport, voter ID card)
For a non-salaried person:
- KYC documents
- PAN Card
- Last 6 months’ Bank statement
- Income Tax Returns
- A balance sheet with profit & loss account audited for the last 3 years
- Firm continuity-proof
Steps to Get an Instant Personal Loan for Home Improvement
- Fill out the application form. It needs basic information like your Aadhar card number, address, Permanent Account Number (PAN), annual salary, etc.
- Use the loan calculator to figure out how much money you need and how long you need it for based on your ability to pay it back.
- As part of the KYC process, the lender will ask you to show proof, like pay stubs, bank statements, and an employee ID. Since it’s an unsecured loan, you won’t have to put up anything as security. But some lenders may take the house you are fixing up as collateral for the loan.
- Once you finish the KYC process, the loan amount will be sent to your bank account. Depending on the lending bank, this can be done immediately or over 24 hours.
Tax Benefits of an Instant Personal Loan for Home Renovation
One of the best things about instant personal loans for home renovation is that they often come with tax breaks.
Section 24 of the Income Tax Act says you can get a tax break of up to Rs. 30,000 per year on your home improvement loan. But remember that this deduction of Rs. 30,000 falls within the limit of Rs. 2 lakhs that has been set for loan interest payments on self-occupied homes.
Using an instant personal loan to fix your home is a good idea for the reasons listed above. If you plan, you can get more out of your loan. It is important to be smart with your money. But, it’s vital to choose the right lender when you apply for a loan. Before making a choice, evaluating different loan options based on the loan amount, interest rate, loan term, and repayment flexibility would be best.
Check out more blogs about instant personal loans on Piramal Finance and explore their various products and services.
Also Read: Beginner’s Guide on How to Apply for a Personal Loan
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