Personal Loan for Home Renovation & Buying a Car

Personal Loans

You have gone through the phases, where you may have felt your hands are ‘tied up’ because of a fund crunch. This is where the ‘savior’ named a personal loan can come to your immediate rescue. No matter what you need – the support from personal loans will always be there so that you can always fly high and fulfill all your dreams! Right.

Whether it is a home renovation or dream of purchasing a car – Get a personal loan and fulfil your desires. If we talk about home renovation, you are not the only one who thinks so!

It’s rightly said that your home indicates ‘who lives in it’. Many people want to make suitable changes in their homes such as increasing the size of their bedroom, repainting their home, buying new furniture or such other carpentry work. With time, people also want to modernize their home. But, as you may have observed, the renovation works are getting costlier by the day and this stops people from proceeding with any renovation work even if they have the mind for it.

Most reputed lenders have acknowledged this fact and have come up with attractive personal loans to support home renovation expenses at reasonable personal loan interest rate. Because of the inherent advantages of personal loans over a home loan, people have started opting more for personal loans for their home renovation works.

For a somewhat similar reason, personal loans are being preferred widely over auto loans whenever an individual is thinking to buy a vehicle.  Unlike auto loans, personal loans are disbursed sooner and with less documentation. Moreover, you do not have to give any collateral/ security in case of personal loans and they often come with reasonable personal loan interest rate.

Read further down and we will give you the necessary comparative insights!

Personal loan for renovating home-

Features and benefits:

As you are aware that personal loans can be used for any purpose as these loans are of unsecured types. The lender will not bother about your intended use of the funds. You would not be questioned on your usage of the loan amount. As for example, if you take a loan of Rs 5 lakhs for buying new furniture for your home, and spend only Rs 4 lakhs, your bank will not question you about the remaining amount (unlike a home loan). Some of the salient features of a home renovation loan are as follows-

  • Most of the lenders would cover up to 90% of the home renovation cost. But some of them may even be ready to fund the entire cost of renovation, depending on your credit profile and the relationship with the lender. In certain cases, the bank may issue the entire loan amount at one go or in installments as and when required.
  • Usually, lenders would give you a choice to opt between floating and fixed personal loan interest rate. In some cases, lenders may offer a combination of the two interest rates wherein the first few years will be a fixed interest rate and the remaining tenure will have a floating personal loan interest rate.
    • For most of the banks, you can apply for the home renovation loan online, thus, negating the need for you to visit the bank at all.
    • Some banks also offer free credit cards with these loans to sweeten the deal.
    • These loans often come with minimum documentation which means less paperwork for you.
  • Many people may argue that personal loans for home renovation come at a higher personal loan interest rate as compared to a home loan. But, you can also get a personal loan for home renovation with a low personal loan interest rate if you have a good credit score and tick other eligibility criteria to the liking of your lender.

Why not opt for a home loan

A home loan mostly covers 80 to 85% of your estimated work budget. Also, such loans need to be taken in the name of the person who will own the property or who is the registered owner of the existing property. This can cause a problem for an elderly person in his ‘50s’ to avail a home loan. It is so because; the lender is less likely to consider his loan application close to his retirement age. Moreover, your children cannot take the home loan on your behalf.

Another disadvantage of a home loan is that it cannot be used for buying furniture. In case of a home loan, the bank inquires about your intended purpose in availing the loan and make sure that you do not use the loan amount for any other purposes. All such issues can be avoided if you go for a personal loan instead of home loans for renovating your home.

Personal loan for buying a car-

We have come across many instances where a personal loan proves to be a much better proposition than obtaining a car loan. Some of the salient features of a home renovation loan are as follows-

  • If you want your dream car to be yours sooner than later and without much delay, then a personal loan can help you the most. As soon as you get the cash, you can drive home with your dream car.
  • The most compelling reason for availing a personal loan for buying a car is that such a loan makes you an instant owner of the car. If you opt for a car loan, the lender will keep the title of the car in its name until you make the full repayment. But, if you opt for a personal loan for buying the same car, the situation becomes different. In such a case, you get the full ownership of the car, on the day you bring home your dream car.
  • A car loan provides only 80% of the total car value. Whereas if you avail a personal loan for buying a car, you do not have to worry about the remaining 20%. The personal loan will fund the full amount of the car along with the fees for registration.
  • A personal loan is processed in a hassle-free manner. If you avail a personal loan online, you need not visit the lender at all (which is unlike to when you avail a car loan). So, if you want to save your time and want to buy a car without much fuss, it is better to opt for a personal loan.

The footnote:

Also Read:  Things You Want to Know About Gilt Funds

Apply for a personal loan for home renovation or for buying a car through the efficient online platform of Afinoz.com. It is the best online financial marketplace in India which has revolutionized the financial services sector with its selected range of solutions. It has digitalized the entire financial processes involving personal loans and will bring forward to your personal loans with the best personal loan interest rate available.

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