Difference between a home loan and a home renovation loan

Difference between a home loan and a home renovation loan

Reported By:Difference between a home loan and a home renovation loan| Edited By: |Source: |Updated: Sep 21, 2022, 01:11 PM IST

Having a house of your own is a dream of many. A house is not just a place to sleep. It is so much more than that is involved. Your house is a source of pride that, in turn, reflects your lifestyle and status. Living in a gorgeous home is a pleasure.

Along with location and building quality, aesthetics and comfort are important. The state and atmosphere of your home influence how guests perceive it, which is a crucial first impression. Make sure your house reflects who you are.

Be it moving to a new house or modernizing and upgrading your home to take it a notch higher. You can now have a loan for both purposes.

A home loan can be a feasible option if you want to buy a new home. Likewise, a home improvement loan is a good option if you want to renovate your house.

What is a Home Loan

A home loan is a personal loan that borrowers can use to get a certain sum of money to purchase a home. With the borrower, lenders enter into a loan agreement in which the borrower promises to pay back the loan over the stated repayment period at the agreed-upon interest rate. A home loan is a secured loan because it is granted in exchange for the house being used as collateral by the lender. Borrowers can borrow a lump sum to pay for a new house.

What is a Home Renovation Loan

Want your house to reflect your style, taste, and personality? Don’t worry about the expenses anymore. You can rebuild or repair your home with the help of a home renovation loan. This loan will assist you in giving your home a new appearance, whether you want to redesign your children’s nursery or rebuild your kitchen. With a home renovation loan, you can get money for a variety of things, including modifying, renovating, or upgrading your house. They are similar to home loans. A home renovation loan helps you improve the house you already own, and home loans are taken when purchasing a new one. They are adaptable, inexpensive, and a hassle-free solution to create a comfortable living space in your home. A secured home improvement loan and an unsecured home improvement loan are the two different types of loans available for house improvements.

Benefits of a home loan

No tension of paying rent every month

Getting a flat to rent within your budget can be difficult and really expensive. Even more, when it comes to metropolitan cities. It can become heavy on your pockets. Therefore, it sounds sensible to own a house and keep paying the EMIs.

High repayment tenure

Extending the repayment period helps ease the stress of making large instalment payments. Additionally, borrowers can use the EMI calculator to determine their required monthly payments based on interest rates and mortgage terms.

Easier and more convenient to buy your dream home

Buying a house with your regular monthly salary can seem difficult, but home loans make fulfilling your dream home even easier.

Benefits of a home renovation loan

No Collateral

Home renovation loans are a form of unsecured personal loan. This means the borrower does not have to keep any collateral against the loan amount. This is why it is a low-risk personal loan.

Affordable interest rates

You can find the greatest offers for financing both modest and large repairs online. Additionally, it has stable, low loan rates. As a result, you may consider taking out a loan for home improvements and managing your repayments.

Hassle-free process

A home improvement loan can be obtained without filing numerous documents. A few basic documents are all you need to apply for this loan. The entire application procedure for a loan for home improvements just takes a little paperwork and may be finished online quickly and easily. The availability of loan apps in India makes the process even more user-friendly.

 

 

 

 

 

(Above mentioned article is consumer connect initiative. This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever)

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