Your home is not just a space you live in; it is a reflection of your personality. It is the place where you feel most like yourself. Just like your other precious things, your home also needs to be maintained and taken care of. Renovations are required from time to time to enhance the value of your house and meet the evolving needs of the people who are living in it. Whether you recently bought a house or it is a place you have been living in for a while, the idea of renovating your house may bring a new level of excitement. But this is something that needs a great amount of money as well.
There are two different types of home improvement loans: secured and unsecured. In a secured loan, you used your house as collateral. In unsecured loans, on the other hand, no collateral is required. However, an unsecured house renovation loan comes with higher interest rates and you cannot claim tax benefits on it.
When you avail a house renovation loan, the interest rates are lower than all other common financing options like personal loans etc. Generally, all lending institutions provide home improvement loans at floating interest rates. However, the interest rate offered to you depends on several factors such as loan amount, repayment capability, tenure, credit history etc.
While availing a home renovation loan, you get complete flexibility on the usage of funds. You can use the amount in any kind of work as long as that is related to your home structure. The most common things you can use this amount for include repairing work, painting etc.