Being a homeowner is one of the most proud feelings in the world, and why not, it is the perfect culmination of your many years of hard work and persistence. But with the ever-increasing prices of the residential real estate in India, it has become increasingly difficult to buy your own home. The money that you have been saving since long might not suffice in the end, because by the time you have saved enough to buy your dream house, the prices would have shot-up further. So, rather than playing the catch-up game, it is better that you take the reins of your finances in your hands and look for the alternate source of funding available to you. One of the best options that you have available is applying for a Home Loan.
Home Loans are a form of a secured loan which is offered by most financial institutions in India to help prospective home buyers purchase their desired residential property. The residential property acquired through a Home Loan is pledged as security with the lending institution and would stay encumbered unless you repay all the EMIs (Equated Monthly Instalments). The tenure of a Home Loan can extend till 30 years,and the rate of interest may vary from time to time. You can continue living or use the residential property as per your wishes as long as you repay the EMIs on time. Many lenders offer the option of top-up loans on Home Loans to help you manage your financial liabilities effectively. In order to Get a Home Loan in India, you can choose to apply with a bank or a non-banking financial corporation, according to your preference. You must do thorough research and only after you have satisfied yourself regarding the various aspects of the said loan, should you proceed ahead with the application for a Home Loan.
Getting a Home Loan will help you purchase a residential property, but in order to get it into the shape where you can call it your dream home, you might have to undertake various renovation and improvement projects. If you want to know more about various projects that you can initiate and how to pay for them, then continue reading.
Most of the times when you purchase a residential property, it is not exactly as per your wishes. But you need not be disheartened; there are various home improvement projects that you can undertake to turn that property into your home. Here are 10 of the most exciting and popular home renovation projects that you can consider:
a. Remodeling of the bathrooms
b. Remodeling of the kitchen
c. Remodeling of the bedrooms
d. Addition of a new room
e. Re-painting the entire house
f. Building a swimming pool
g. Repairing external damages
h. Changing the old lights with new lights
i. Changing the flooring
j. Replacing windows and doors
Once you have identified the particular home improvement idea that you want to undertake, then you must get in touch with a contractor to get an estimate of the total costs involved as well as the duration it is going to take for the renovation to be complete. Once you have obtained the assessment of the total expenses and time required for completion of the project, you need to identify the various sources of finance that you can explore to finance these expenses. Some of the available funding sources that you can use are:
You can use your personal savings or take money from your emergency fund to finance the home renovation project you want to undertake. But this option is recommended only when you need money to fund a small project and not a major one.
You can use your Credit Cards to finance individual projects that require the purchase of new material or equipment. But as the rate of interest on Credit Cards is extremely high, you must use it only for small projects.
You can avail a Personal Loan from any of the numerous lenders in the market. There are high-value Personal Loans available up to 50 Lakhs from different lenders and come with a repayment period of up to 5 years. So, if it is a significant project you are willing to undertake, then applying for a Personal Loan makes a lot of sense for you.
When you avail a Home Loan to purchase a property, you can ask the lender to sanction some amount towards renovation costs as well or take a top up Home Loan. This will only be an extension of your Home Loan and will come at the same rate of interest, repayable over the tenure of the Home Loan.
If you want to undertake a significant renovation project, then you can opt for a Loan Against Property, which is a secured loan. You need to have a property that you can mortgage with a lender, in order to generate funds under this source.
Home renovations are an integral part of owning a home,and it is an expense that you must undertake over the due course of time. But whenever you need to pursue a home renovation project, it is recommended that you assess the various sources of financing available and then select one that suits your requirements the most.
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