Simple Ways to Pay for Home Renovations

Whether
you live in an ancestral home or a newly purchased one, some renovations or
changes are needed with time due to wear and tear. Often, a change may also be
required to make the home more comfortable, modern, and livable for the family.

You
may not always have the money at your disposal to pay upfront for all expenses
needed for a renovation. Liquidating your hard-earned savings for a spruce job
doesn’t seem financially prudent either.

There
are many ways to get your renovation project funded – you can get home repair
loans, conduct a garage sale, get a top-up home renovation loan, and more.

Here
are some quick and simple solutions you could try:

Garage sale/online sale

If
you are overhauling your house for contemporary needs, there is a good chance
you may be getting rid of a lot of stuff, including white goods, kitchen appliances,
wooden items such as chairs, tables, cabinets, etc.

Rather
than paying someone to discard them, you could sell a lot of things you don’t
need through a garage sale or list it for sale online. Yes, the money you make
may not be enough to fund your entire project, but it can surely help to an
extent.

Credit cards

If
you are making small changes to your home, like installing a new wardrobe,
spending via your credit card could be a good option. The amount could easily
be converted into three to six-month EMIs depending on your budget. However, it
is important to note that the interest rate on credit cards is one of the
highest among all loan products. It could range from 15% to 25% or even more,
making the financing very expensive.

Personal loan

A
personal loan for home renovation is one of the quickest and most
affordable ways to fund your project. Such a loan offers complete
flexibility to manage the repayment terms. Whether it is a small fix-up job or
a full-scale remodeling, you can avail of a house renovation loan that
will allow you to renovate your home just the way you want to without cutting
corners.

Top-up loan

If
you have an existing home loan, you could avail of a top-up loan for your
renovations. The eligibility of your top-up loan depends on your current debt
exposure with the home financing company and credit risk. If a good chunk of
your home loan has been repaid, you may be able to get as much an amount you
need. 

The
advantage of a top-up loan is that you do not need to go through any additional
documentation or processing. The loan amount gets added to your existing loan.
A top-up loan, however, maybe 1% to 2% more expensive than your existing loan.
And it increases your home loan tenure proportionately.

In closing

A home renovation loan is one of the easiest and economical ways of remodeling your home. Check out a personal loan for home improvement from Tata Capital, which is affordable, convenient and absolutely transparent.