It is that time of the year! The festive season has arrived. Even though the pandemic is here to stay, it by no means should dull or dampen our high spirits during this much-awaited celebratory period.
In India, the Navratras are immediately followed by Diwali. Diwali is a festival of lights, joy, and splendor. We welcome the arrival of gods and goddesses in our homes and hence light up our homes in every way possible. It is hence, not a surprise that most people decide on renovating and reinventing their homes in a brand new way.
The online partners, interior decorators, and other associated service providers also make the most of this time and offer the best possible discounts and offer their services at throwaway prices.
If you are deciding to style and renovate your home this season, there is an extremely easy way to finance your needs. Personal loans have you covered as the increasing and booming market of these unsecured consumer loans ensures you get the best possible deals.
Here’s how you can finance the look of your dream home
1. Calculate your requirement
- Your loan amount would depend on two main factors:
- Type and Size of Renovation
- The first step before opting for a personal loan for home renovation would be to compute how much money would you require? Figure out what changes you’d wish to do to your home. Painting, Interiors, structural changes, furnishings, or any other decorative changes. Further, decide whether you want to do it for the whole house or just for a particular section.
- Market Offers
- Once you decide this, you should check and research the market for the plethora of festive deals that are on offer. Ask for a quote, compare them, and then decide which one is the most economical and comprehensive. You can request the quote from all service providers and owing to the competition and their need for increasing their business, they all will be willing to offer heavy discounts.
- Once you have the quotes, decide on your service providers, add a bit of tolerance on the amount – say about 10% for any overhead expenses and you’ll have the figure you need to borrow
2. Market Research
- Once you understand your requirement, you can explore the large market of personal loans. Right from banks to NBFCs – personal loans are being offered by almost all financial institutions.
- Respectable names such as Fullerton India even offer instant personal loans up to 25 lakhs! Hence, it is important that you check which financial institutions would best suit your needs and requirements
3. Eligibility
- Needless to say, all borrowers are expected to meet the eligibility criterion of the lender before borrowing the funds. There are basic checks such as your age (preferable above 21 years), Indian citizenship, and income levels.
- Hence, remember to always check that you meet all the criteria for the amount you wish to borrow for your home renovation plans. The amount of the loan should be in sync with the net income that you earn. This is to say that you should be in a financial position to pay back the borrowed sum
4. Credit Worthiness
- Banks and NBFCs also consider your financial health before approving your loan amount. This would be directly proportional to your CIBIL score. The higher your score the more likely you are to receive your loan.
- Thus, you must always maintain a good CIBIL score by ensuring that you do not delay or defer repayments, never miss on an EMI, and are not caught up in a debt cycle.
5. Interest Component
- Interest is the most important factor to consider. During this festive season when many would be looking to borrow loans for their home interiors, you can negotiate on effective and competitive interest rates.
- For example –Fullerton India personal loans interest rates starting from 11.99% p.a. You must scourge the market for such interest rates that are not a burden on your wallet.
6. Tenor and EMI
- Understand your cash flow situation and accordingly decode on your tenor. The tenor is the time period by which you wish to settle the loan. The longer the tenor, the lower your EMI.
- You must calculate your monthly expenditure and then decide on a monthly installment that will not be too high. You must ensure that the amount of the EMI is such that you are able to pay it every month and do not miss it under any circumstance. A word of caution here, if you are unable to pay your monthly installment, it will gravely and negatively affect your credit score.
- You can also use the online EMI calculator that most of the NBFCs such as Fullerton India provide on their website to calculate your monthly installment and then accordingly decide on a tenor.
7. Transparency and Customer Service
- Always check for any overhead charges clause before you borrow a personal loan. When you do choose a lender for your personal loan, ensure that you have clear communication with regard to any other expenses that may be levied. Charges such as processing fees, prepayment charges, foreclosure, delayed interest, etc can make even economical deals seem expensive
- Further, choose a lender that will value the business relationship they hold with you. In case of any requirement, you should be able to connect with them without any delays. You should opt for a lender with a customer service that is prompt, efficient, and dedicated.
In conclusion, personal loans are a great option to give a brand new and stylish look to your homes this festive season. The main advantage of personal loans being easy documentation and the fact that you do not have to state a purpose for the end use of this loan. Hence, you can use the loan as per your requirement.
Even if the pandemic has left you in a cash crunch, thanks to easy and affordable personal loans, This Diwali you can still light up your lives, refurbish your interiors and homes.