5 Ways to Finance Home Improvements

Whether you have owned a house for decades or just a few years, it will need extra love and pampering from time to time, to look great and feel cosy. In other words, home improvement is not a luxury, but a necessity. However, financing home improvements can be quite challenging. You may not have enough cash with you to make payments for major fixes or repairs. Fortunately, there are many ways for you to finance these projects without having to dip into your savings, which can otherwise come in handy on a rainy day. Take your pick from one of these financing options instead.

1. Home Improvement Loan

You can repair, renovate or change the structure of your house and finance it by taking a home improvement loan. It is one of the most viable options, especially if you have major renovation work going on. There are many financial institutions that can offer you such a loan. Some of these do not need you to provide any security or collateral to apply for the loan. In other words, you can go for an unsecured home improvement loan. And you can pay it off through affordable monthly instalments. Some lenders also give you the option to choose long repayment tenure at a nominal interest rate.

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2. Recurring Deposit

Apart from getting a home renovation loan, you can maintain a dedicated Recurring Deposit (RD) too. The specific amount you pay towards it every month can take care of your project and save you the trouble of borrowing from the lender. This way, you do not have to worry about your credit score or the home renovation loan interest rate you may get. If you are a senior citizen, some financial institutions might offer schemes that are specially designed for you. They offer a high rate of interest for your RDs for a shorter period of time.

3. Personal loan

Another option is to get a personal loan from credible sources to finance your home remodelling project. The eligibility criterion for such a loan depends on your age, current salary and your credit score. If you fulfil these requirements, you can get on with redoing your home in no time.

4. Interest-free credit cards

To make smaller improvements to your house, like installing a new closet or upgrading your dressing table, you can consider using your credit card. The advantage is that some credit cards allow interest-free cash withdrawals for the first few months and also zero annual fee. This means you can finance the home improvement project without having to pay any interest. In addition, the more you spend on redecoration, the more rewards or cash back you can earn, depending on what kinds of benefits you have on your credit card.

ALSO READ: Differences Between Land Loans And Home Loans

5. Cash

Cash payment is a great way to not worry about things like a home renovation loan interest rate or defaulting on payments once you get a personal loan. Paying through this method makes sense for small home projects. This will help you avoid extra costs and stick to your budget. Plus, if you know someone trustworthy who can handle your renovation project well, you can always work out a deal where you pay him or her in instalments. You will not have to make a huge payment all at once.

So, go on and give your house the boost it needs without agonising about the finances. Whether it needs repairs, remodelling or refurbishing, you can go ahead with it by using a home renovation loan, personal loan, credit card, recurring deposit or cash. The bonus is that you will end up improving your property value as well, apart from its looks.