Top 6 Tips to Get an Instant Loan for Home Renovation

With work from home set to become a norm, you surely want your home to b more comfortable and functional. Renovating your home can add more value to your life. However, it also comes with significant expenses. The good news is that you do not need to deplete your finances to remodel your home. You can easily meet this goal by availing a personal loan for home renovation.

A home renovation loan is an affordable way to finance your home renovation project. However, there are certain things you have to consider to ensure your loan application does not get rejected. Follow these 6 tips to get your loan approved instantly.

1. Apply For the Right Amount

There are several ways you can revamp your space with a home renovation loan. But remember, you have to repay the loan someday with added borrowing costs. So, set a home improvement goal in your mind and apply only for the amount that you consider essential and usable.

2. Look For a Pre-Approved Offer

A pre-approved offer enables you to apply for a loan more easily and quickly. Such offers are based on your previous credit experience with the lender. Not only do you get fast access to funds, but you are also offered competitive interest rates. So shop around for a pre-approved loan from different lenders for a hassle-free loan-taking experience.

3. Find a Lender with Simple Eligibility Criteria

The eligibility criteria for a home renovation loan vary from lender to lender. To prevent your loan application from being rejected, look for lenders with simple terms. Here are some primary conditions that will enable quick approval of your construction loan:

  • Your age falls between 23 to 58 years
  • You are a permanent resident of India
  • You work full time with a steady salary
  • CIBIL score of 750 or more
  • You match the minimum income requirement of the lender

4. Reduce Your Debt-to-Income Ratio

Your lender may not approve your loan if you already pay EMIs for numerous loans. Therefore, try to pay off your existing loans and reduce your debt-to-equity ratio before applying for a new loan.

5. Keep Your Documents Ready

Though the documents required for an availing loan have reduced over the years, there are still some basic ones that most lenders require. Keeping them ready can quicken your approval process. These documents include:

  • Duly filled application form
  • Recent passport size photograph
  • Identity proof (Aadhaar Card, PAN Card, Government ID)
  • Address proof ( Aadhaar Card, Voter ID, Passport, Driving License)
  • Income proof, including last month’s payslip or current year’s Form 16.

6. Plan Your Repayment

You can reduce the stress on your finances if you plan your repayment beforehand. Some construction loan enables you to enjoy a longer tenure with shorter EMIs. However, choosing a shorter term can reduce your interest outgo. Use an EMI calculator to select a suitable tenure based on your budget and repayment capacity.

Final Words

Whether you’re redoing your kitchen, upgrading your living room, or setting up a terrace garden, a home renovation loan can turn your home improvement dream into a reality. Follow the above tips and quickly get your desired loan approved.

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