Home is one of the precious assets which any individual never likes to apart with. What make it so significant? The answer is its LOYALTY to serve you for so long which makes its maintenance extremely important that in turn demands big moolah. You can consider availing a home improvement loan which helps you to complete all the necessary renovations and enhance value of your residential property many fold in the property market.
Falling under secured loans, home improvement loan is offered against your home or any other valuable property. Another advantage talks of the lower interest rates on home loan that comes on hand with such improvement loans. Lower rate makes it easier for the borrower to repay the home loan on a monthly basis. Depending on the criterion, most banks allow the borrowers to repay home improvement loan as per their repaying convenience. Combined with lower interest rate and larger tenure, you can opt for paying lower amount towards the EMI (equated monthly installments) per month.
Talking about the loan amount, it largely depends on current value of your home and equity in it as such kind of a home loan is secured against your home or any other valuable property. Also, the maximum and minimum loan amount may vary among different home loan banks and financing institutions. The loan amount can be used for any improvement in home like fixing home, adding a room, renovating kitchen or buying furniture.
Even, people with bad credit can also buy a home loan for making improvements in home. Since it is a secured loan, lenders have a low risk and do not go in much reporting to approve the loan for borrowers defaulted on payments. However, the home loan interest rates for an individual with bad credit report would be higher as lenders require covering risks.
You can also apply for online home loans. Banks are financing institutions generally prefer online lenders for a low rate and cost free approval of the loan. Repaying the loan in time is extremely important to save yourself from loosing your home to the lender.
By : Aditya Jaiswal
