According to a recent report by RBI, home renovation or home improvement loans constitute 30% of total personal loan disbursed. Of all the important factors that increase your chance of getting a House Renovation Loans, the most important criterion is your good credit score. Having a good credit score assures the lenders that they have a fair chance of getting the loan back from the borrowers. Since the lender requires no mortgage of assets, hence an excellent credit score is an important factor they heavily rely on.
Home improvement is not an option but an obligation for the homeowners. It not only makes your property look spick and span but also adds to the value of the same. A part of the home improvement loan goes towards home decoration. The article discusses some important points that you must know before applying for a home renovation loan.
Credit Score: A credit score of 750 or more is an essential eligibility criterion for loan approval. The best way to maintain a good credit report or improve CIBIL score is to pay off the dues on existing loans.
Residential City or State: Many lenders choose to grant home improvement loans only if you live in any of the selected cities in India. The salaried professionals can get loans from Bajaj Finserv only if they live in the eligible cities.
Interest, Fees and Other Charges: Interest is what you pay on the principal that you take out as a loan. The lower, the better! Look for the lender offering the lowest interest rate loan. However, also make sure to know fees and other charges related to loan approval. The borrowers need to pay a cheque for loan processing.
Approach Bajaj Finserv if you want to obtain a loan to manage home decoration and renovation expenses. They have attractive offers on different financial products including home decor loans and other personal loans.
