New Delhi | Jagran Brand Desk: Whether you’re looking to redo your home to increase its value or to suit the needs of your loved ones, a home improvement loan is a smart way to finance the task at hand. They are easy to avail of, have a sizable sanction, and don’t need any collateral. What’s more, top lenders are now offering these loans at cost-effective rates. This means that now could be the right time to renovate your home, just in time for the new year!

To know how to get an affordable home improvement loan in the coming months, take a look at these simple tips.

1. Do your research and compare home renovation loan offerings

Contrary to popular belief, the best personal loan for the home renovation isn’t always the one with the lowest interest rate. While it is wise to shortlist offerings based on this criterion, your research should consider several other factors. Ideally, you should look for a home renovation loan with both a low-interest rate and a suite of other features. This way, you can enjoy an affordable and favourable experience on the whole.

Certain lenders may offer facilities that allow you to borrow in a pocket-friendly manner. One great example is the Bajaj Finserv Home Renovation Loan, as it comes with the Flexi facility. Here, you can borrow from your approved sanction freely, as many times as needed, without any hassles. You can choose to pay interest-only EMIs for the initial months of the tenor too. This allows you to reduce your EMI outgo by up to 45%*, helping you plan and space out your finances better.

2. Maintain an excellent CIBIL score

An easy way to avail of an affordable home improvement loan is to apply with a stellar credit profile. Meaning, you should have an excellent CIBIL score, which is 750 or higher. While most lenders have a minimum requirement of 650, just making the cut doesn’t help you secure major benefits. However, with an excellent score, you may qualify for special offers and better terms.

If your score is lacking and you’re looking for ways to increase it, follow these tips.

-Check your credit history and fix any errors if they exist
-Pay off your existing short-term credit
-Don’t apply for new credit for at least 6 months
-Reduce your credit usage and bring your total utilisation ratio to less than 30% of your credit limit

3. Keep a low FOIR or debt-to-income ratio

Getting low-interest rates on your loan is key to enjoying an affordable experience. However, lenders are more likely to offer favourable rates to borrowers who have the wherewithal to make timely payments. One way to showcase your ability to make these payments is to prove that your income isn’t overburdened. You can do this by ensuring your debt-to-income ratio or FOIR is less than 40%. Check your finances before you apply. A low FOIR is an easy way to get a better deal as you have the income to comfortably make payments without substantial risk to the lender.

4. Look for a loan with a flexible tenor

To have an affordable experience, you must pick an offering that has the right features. In this case, you should pick one that has a lengthy and flexible tenor. The key to an affordable loan is to choose a tenor that perfectly fits your monthly budget. This way, no matter your financial goals, the loan doesn’t have to become a burden. If you want more pocket-friendly EMIs, pick a longer tenor.

5. Avail a pre-approved personal loan for home renovation offer

Pre-approved home renovation loans are likely to offer you the best deals. Lenders that offer this provision personalise the offer and pick the best terms for you. These instruments are not only affordable but easy to avail as well. So, if you’re looking to get a loan you can comfortably manage, check if you have a pre-approved offer. Usually, these are offered by lenders you have an existing relationship with or have prior dealings with.

Following these tips should help you easily secure an offer that suits your budget. For an affordable and smooth all-around experience, you can always rely on top-tier offerings like the Bajaj Finserv Home Renovation Loan. The Flexi Loan facility, combined with a tenor that ranges up to 60 months, and a competitive interest rate, are sure to help you keep the EMI in check. To get hassle-free access of up to Rs. 25 lakh, check your pre-approved offer online in just a few clicks.

 

(Note: The article has been written by Brand Desk)