Is It Smart To Use Personal Loan For Home Renovation?<\/strong><\/p>\n\n\n\nAs these are unsecured loans, they will have higher interest rates. However, for home loans, you need to present collateral. Also, you would need enough equity. With a home renovation loan, you will not require any collateral or equity, and everything will be approved within a short span of time.<\/p>\n\n\n\n
You must be careful about if you default on your loan; you can expect a significant fall in your credit score. In some cases, there might be a stay on your credit record.<\/p>\n\n\n\n
Applying for a home renovation loan is way simpler than applying for other loan types. You have to show multiple financial documents in order to get the loan approved. The Home renovation loan, on the other hand, requires no prolonged documentation.<\/p>\n\n\n\n
What Are The Pros And Cons Of Home Renovation Loans?<\/strong><\/p>\n\n\n\nIt is important to understand what are the merits and demerits of this loan type before you make a decision.<\/p>\n\n\n\n
Pros:<\/strong><\/p>\n\n\n\n- No-Risk:<\/strong> There are no risks of losing your house as you are not keeping your home as collateral for availing of the loan.<\/li>
- Fast Funding:<\/strong> You don\u2019t have to wait for months in order to get your loan approved and credited. Everything will be done within days.<\/li>
- Low Fees:<\/strong> Banking institutions or lenders will not charge you hefty processing or commission fees for this type of loan.<\/li><\/ul>\n\n\n\n
Cons:<\/strong><\/p>\n\n\n\n- High-Interest Rates:<\/strong> The major drawback of this loan type is its high-interest rates which can be hefty on you.<\/li>
- No Tax Benefits: <\/strong>Unlike other loans, there will be no tax benefits against this type of loan.<\/li>
- Lower Maximum Loan Limit:<\/strong> The maximum limit for the loan amount will be lesser in this type of loan. You will have to arrange more funds if you need to renovate your house in a better way.<\/li><\/ul>\n\n\n\n
The Bottom Line<\/strong><\/p>\n\n\n\nThe home renovation also required pretty much funding, and sometimes, you may need a loan. Personal loans for home renovations have become popular due to their ease of availability, no risks, and lesser fees.<\/p>\n","protected":false},"excerpt":{"rendered":"Today personal loans are used for plenty of reasons. A personal loan can be used to complete different…\n","protected":false},"author":4,"featured_media":2199,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[23,24],"_links":{"self":[{"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/posts\/2198"}],"collection":[{"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/comments?post=2198"}],"version-history":[{"count":1,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/posts\/2198\/revisions"}],"predecessor-version":[{"id":2200,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/posts\/2198\/revisions\/2200"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/media\/2199"}],"wp:attachment":[{"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/media?parent=2198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/categories?post=2198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dailymagzine.com\/wp-json\/wp\/v2\/tags?post=2198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}