Types of Home Renovation Loans: Exploring Your Financing Options

Most of us aspire to buy a home for ourselves and our families. Once you make this investment, keeping the house in the best condition is essential to live comfortably and preserve its value. However, renovating your house can be a daunting task, especially if you are on a limited budget.

Luckily, these days, various banks and NBFCs in India offer home renovation loans to help make this process easier and more affordable. You can avail these loans for all types of home renovations, be it minor upgrades or significant improvements. Whether you’re looking to make some minor upgrades or significant improvements, we have got you covered.

Types of Home Renovation Loans

1. Home Improvement Loans

These are secured loans offered by banks and NBFCs with attractive home renovation loan interest rates. These loans are specifically designed to cover home renovation projects like kitchen improvements, electrical work, repairs, redecorating, etc. The loan amount and repayment varies from lender to lender, and you may need to pay an upfront processing fee of 0.5-1%.

Some of the key features of the house repair loans are:

  • Quick processing and minimal documentation

  • Flexible loan tenures

  • Easy repayment process

  • Attractive home renovation loan interest rates

2. Top-Up Home Renovation Loan

These are additional top-up facilities offered by financial institutions over and above your existing home loan amount. Such loans for renovations are generally attached to your home loan and let you receive additional financing at a lower rate of interest. Top-up loans are a great way to fund minor renovations and repairs.

Some of the features of a home renovation top-up loan are:

  • Comparatively lower home improvement loan interest rates

  • The loan repayment schedule may get extended whenever you make additional payments

  • You do not need to provide additional security or collateral

  • Zero restrictions on the use of the home improvement loan amount

3. Credit Card

Another easy option to fund relatively small home improvement projects is using a credit card. Most credit cards now offer rewards and purchase protection schemes to help you track your spending. Many banks also issue credit cards that can be used to finance home renovation expenses. However, you must note that your spending will be limited only within the credit card limit Hence, it is ideal to opt for this option of home renovation financing only as a last resort as- credit cards can charge extremely high rates of interest.

Some of the features of using your credit card for home improvements are:

  • Get easy and quick access to funds

  • You do not need to provide any collateral or security

  • Benefit from flexible payment options

4. Personal Loan for Home Renovation

A convenient way to fund your home improvements is availing a personal loan for home renovation. Today, financial organisations like CASHe offer quick and easy home renovation personal loans at attractive interest rates. Generally, these loans are unsecured in nature and give you the liberty to use the personal loan amount for any expenses, including home repairs, renovations, decorations, etc.

Some key features of home renovation personal loans are:

  • Instant approval and disbursal

  • No requirement for any security or collateral

  • Flexible tenure and repayment options

Renovating your house from time to time not only improves its value, but also gives you the utmost happiness. Availing hassle-free and affordable personal loans for such home renovations can help in reducing the financial burden on your hard-earned savings. So, wait no more! Apply for a home renovation loan on CASHe and your house a new look.