Home comes under the basic necessity of the human being. Every individual has a dream of his own house. One who has his own house, the home requires renovation, an improvement over the period of time. Home is a place where one can spend his whole life. Home needs care and attention to maintain elegance and after 15 or 20 years when the condition of home become worse, then an individual prefer renovation of home instead of selling that home because one spends his whole life in the same home, he is emotionally and mentally attached with that home. Every home demands maintenance like restoration, painting, remodeling etc. An individual requires a huge amount due to the rising cost of material and labor. There are many loans which are available in the market for improvement or renovation of your home.
Top up loan for renovation
A top up loan is a loan type in which you can avail an additional loan amount on your existing home loan, personal loan or loan against property. You can avail the top up loan amount only if you are paying regular EMIs on your existing loans. You can use the top up loan amount for the renovation of your home purposes like painting, remodeling, restoration etc.
Personal loan for home renovation
A personal loan is an unsecured loan which an individual can use for the various personal purposes such as the renovation of a home for painting, remodeling, restoration etc. As it is an unsecured loan, absolutely, there is no need to mortgage your property. If you are meeting with all eligibility criteria then you can easily avail this loan. It is a hassle-free and quickly available loan type.
Some reasons for which you can borrow personal loan for home renovation
1. Collateral free loan
For home loan or loan against property, an individual has to mortgage his property but some individual does not have property to mortgage. In that case, personal loan plays an important role as it is an unsecured loan, totally collateral free loan. You can take a personal loan and use it for home renovation.
2. Lower interest amount
Home loan or Loan against property goes up to 15 years to 30 years and due to the long tenure, the interest paid is higher. It is better to take a personal loan for home renovation as the rate of interest in a personal loan is higher than the home loan. Even after higher interest rate in a personal loan, the interest paid is lesser because of shorter tenure in personal loan.
3. Shorter tenure
Home loan tenure goes up to 30 years and it is the biggest financial commitment that one can make in his life because it lasts for at least a decade and adds to the burden for a majority but in case of personal loan you will get debt free sooner as tenure of personal loan goes up to 5 years. So, a personal loan is the best option for home renovation Loan.
4. Hassle free loan
A personal loan is totally a hassle-free process because most banks offer instant approval facility on loan with low documentation and the loan amount is also disbursed the same day or within 2-3 days. So, you can avail personal loan and use it for home improvement.
So, personal loan and top up loan are the two best type of loans available in the market. You can choose the one which best suits your requirements.