Financial Blog

10 reasons why personal loan is best for renovation or reconstruction work of your home

posted on 2019-08-13 12:32:20 by Admin

Renovation of our home is the best thing we can do with our house but it is not an easy task as it looks. A function in your family and home renovation work can put an extra load on your pocket and asking your friends for money is always a hectic job for your social status. But if you think about a loan but home renovation need only a small amount of funds & running here and there for documentation work of banks only waste your precious time. So what is the solution for it?

Bank loan which is ideal for instant funds for home renovation?

In the need of funds you have three options, first is you can use your credit card for goods, the second is you can apply for the home loan for renovation and the third is a personal loan. But there are plenty of reasons why you should go for a personal loan. Here are 10 reasons why personal loan is best for renovation or reconstruction work at home

1. Fast processing & quick disbursal:

Renovation work at home can’t wait for a long time as the function date at your home could be fixed. In this scenario personal loan is the best deal for you because of its quick processing & disbursal.

2. Can apply online:  You can apply for personal loan only easily

By filling up the form online, fintech companies call you within minutes and after checking your credit history and salary slips them most of the time they disbursed loan within 24 hours.

Apply personal loan online

3. Gives you amount 4 to 5 times higher than your salary

You can get the personal loan amount up-to four to five times higher than your salary. For that, you have to submit the salary slips only. You can check your personal loan EMI calculator here.

4. Higher time period for the re-payment:

It gives enough time for the re-payment of personal loans like 4 to 5 years unlike credits cards ask for billing within 45 days only.

5. Low interest rates as compared to credit card & fixed interest rate:

Buying goods on credit card EMIs is the worst decision one can take because of its high-interest rates, hidden charges & high late fee. On the other end, a personal loan gives you a higher amount for a longer period with lesser interest rates.

6. Flexibility in using the funds:

There is no restriction on using the number of personal loans. You can either use it for your home renovation or you can use it for buying a new sofa, it gives full flexibility to use your fund according to your needs. On the other end, there is a restriction of using a home loan for work related to home only like the construction of the expansion of the home.

7. It is unsecured loan:

The best thing about a personal loan is it is an unsecured loan; there is no requirement of collateral.

8. Can apply from both banks & NBFCs :

Most of the banks ask for borrower salary higher than 30 thousand but you can also apply for it from non-banking financial companies, where eligibility criterion for personal loans could be different.

9. Can improve your CIBIL or credit score:

Because of the low amount and longer period for the re-payment, it is very easy to pay the full amount of personal loan which solely represents you as a good borrower which improves your credit score & trust with banks.

10. Tax benefits:

According to current Indian laws(Income Tax Act, under section 24b), if you used your personal-loan amount to buy a new home or for re-construction or renovation work at home then you are eligible for a tax deduction against the interest portion of your loan repayment.

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