How To Use Personal Loan For Home Renovation or Office Interior?

Personal loan for home renovation or office is ideal if you need a large sum of money. Read to know the things you should be aware of before availing loan for renovation!

25 Nov,2022 17:08 IST 13 Views
How To Use Personal Loan For Home Renovation or Office Interior?

Renovating a house or a workplace from time to time is important as these are the two places where people spend most of their time. Renovating a house improves the functionality of the house, increases value, and lowers the energy cost in case of energy-efficient work, increases the living space, changes the style, and brings back the house to life. An updated house is also a reflection of social status and accomplishment. A lovely house not just provides peace but also leaves a lasting impression on guests.

It is equally important to upgrade and renovate the workplace as this is the space where one spends most time after the home. A good-looking office with a robust infrastructure is directly linked to employees’ motivation and productivity. It also plays a significant role in leaving an everlasting impression on existing and prospective clients. Office renovation is also needed to keep up with the modern times, address safety concern, build up the brand image, lower the maintenance cost, and increase the sustainability.

Most often, renovating a house or an office is an expensive work and may require deep pockets. It is here that a personal loan can be of great help. An individual can avail a personal loan from a bank or a non-banking finance company (NBFC). Lenders typically attach no end-use restrictions on personal loans; hence, it can be used for just anything.

Since personal loans are disbursed in an applicant’s account in one go, it is important for the borrower to be disciplined in spending it. Here are a few things to be kept in mind for a person availing a personal loan for office or home renovation.

Check Eligibility:

A borrower should use online tools to check the amount that lenders can sanction for personal loan based on salary, credit score, and other eligibility conditions.

Identify The Work:

A borrower needs to be clear about the renovation he or she wants at the home or the office. The renovation work at home would typically include repairing, extending and remodeling the kitchen and the drawing room or the bedroom, replacing furniture, having additional wardrobe, changing electrical wiring, buying new electronic appliances, new fixtures, getting walls painted, or addressing any new requirement among many others. At office, a renovation may include repairing the structure, painting walls and ceilings, upgrading flooring, and extending space.

Get An Estimate:

A fair idea about the work to be done would help finalise the amount. A borrower should rope in an expert or interior designer to help finalise the amount. He should earmark the estimate going into different works and keep a note of them. The borrower should also make provision for other incidental or miscellaneous expenses that may be incurred and have not been factored in.

Avoid Last-Minute Changes:

Once the renovation work starts, the borrower must avoid last-minute changes. This would ensure that the borrower is not dipping his hands into the personal loan for a new work and disturbing the estimates.

A renovation work would many a time require advancing the money to the mason, other workers or an interior designer who have been roped in. Also, the borrower may need to spend the money at different stages of renovation. Hence, it is important for the borrower to keep a record of the expenses going towards various works and keep tallying them with the estimates to avoid cost overrun. It is also important for the borrower to avoid deviating too much from the scheduled plan. For instance, if a borrower has availed of a personal loan for kitchen remodeling, he or she should avoid using the amount for buying unplanned new furniture or new electronic appliances.

Conclusion

Spending a personal loan towards home renovation or office remodeling must be done with prudence. As personal loans carry higher rates of interest than secured loans such as home loans, it is crucial to select the right lender. One must compare various lending options based on the interest rate, loan amount, loan tenure, and repayment flexibility before making any decision.

The borrower must also ensure that the lender customises the personal loan as per the requirement. IIFL Finance customises the personal loan around the requirement of the borrower with a hassle-free application process.

At IIFL Finance, the interest rates on personal loans start from as low as 11.75% and the loans do not have hidden charges. The application for the loans is processed within five minutes and without any extensive documentation.

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