Home renovation is a top priority for many homeowners. After all, it can enhance its functionality, aesthetic appeal, and resale value. Whether through cool décor, fancy fixtures, extra rooms, kitchen interiors, new balconies, or trendy customisation, renovations can breathe new life into your living space.

Home renovation projects are usually expensive and require a lot of funding to bring your vision to life. This is where a personal loan can help out.

What is a personal loan exactly?

A personal loan is an unsecured loan, which means it doesn’t require collateral such as your home or car. It is based on your creditworthiness, and banks will look at factors like your credit score, income, and debt-to-income ratio.

Personal loans offer a lump sum that you can use to cover expenses like weddings, travel, medical care, education, and even home renovations.

How to use a personal loan for home renovation projects | Key pointers

Here is how to apply for and use a personal loan for renovation projects and make it your happy place.

1. Choosing the right personal loan

Perhaps the most important task is to choose a bank which offers personal loans with competitive rates and flexible terms. You can consider IndusInd Bank Instant Personal Loans as they are highly affordable and offer quick approvals and disbursals. Simply click on the apply personal loan option online and get additional perks like:

High loan amounts	Avail any loan amount between ₹30,000 to ₹5 lakh.
No physical documentation	No need to submit any physical document as the process is conducted digitally and is 100% paperless.
Competitive fees and charges	Get a transparent fee structure with affordable charges and minimise the total borrowing cost.
Customisable repayment tenure	Select any tenure between 1 to 4 years to repay the loan.
Online account management	Manage your loan online through digital features. Check payments, statements, and other transactions instantly from anywhere.

 

2. Plan your home renovation to borrow the right amount

Once you have decided to proceed with the loan, set a budget for your project. This should include contractors’ payments, materials, labour costs, permits, waste removal, and a contingency fund for unforeseen expenses. This can help you avoid borrowing too much or insufficient funds.

Next, use a personal loan calculator to calculate your Equated Monthly Instalments (EMIs). Just input the loan amount, the interest rate you are being offered, and the tenure. Click on calculate, after which the tool will display the monthly instalments you need to pay towards the loan. This helps you borrow the correct amount according to your house renovation needs and repayment capacity.

3. Apply for the house renovation loan

IndusInd Bank Instant Personal Loan offers you the benefit of applying from your home since the process is completely online. Only your personal and financial information, like income, employment, and credit history, are examined. Moreover, quick processing and disbursal times mean your time-sensitive projects can start without delay and get completed in the desired timeline.

5. Use the borrowed funds wisely

Hire contractors, purchase materials, and handle expenses carefully. Try not to spend on unplanned things to ensure you do not exhaust your budget before the renovation is completed.

By following this strategy, you can ensure the loan serves its purpose and your project finishes on time, just as you wanted.

5. Repay the loan on time

Now comes the repayment cycle of the personal loan you had obtained. Stick to the repayment schedule mentioned in the loan agreement to avoid penalties and negative impacts on your credit score. You can even automate your EMIs through your bank’s mobile banking app to pay instalments on time without any manual intervention.

Punctual repayments help to maintain and improve your credit score by showing responsible financial behaviour. It can also help you build a positive relationship with your bank and access future credit with better terms.

Key takeaways

A personal loan is an affordable solution that can help you finance your dream home renovation project with quick funds and predictable EMIs.

By carefully planning your renovation project, budgeting wisely, and ensuring your upgrades add value, you can make the most of your personal loan and enjoy your newly renovated home. Always remember to choose a bank that offers favourable terms so that you can manage your loan repayment responsibly.