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Home Improvement Loan Interest Rate
It is rightly said that there is no place like home! Your home is truly your castle, but even the best of castles occasionally need some renovation and remodeling! Are you on the lookout for some funds to perhaps, add a room, construct your very own in-house bar, or build your own little home-theatre? Well, look no further, read on to know more!
Why take a home improvement loan?
A well-thought-out renovation could possibly help increase the value of your home and the loan might pay for itself in case you decide to sell your house for a profit sometime in the future. A home improvement loan could come in handy, in case you wish to undertake extensive decor and furniture redesign, or build an extension (like constructing an additional floor) or something as simple as enclosing a balcony or renovating bathrooms to include an expensive sauna and a Jacuzzi.
Getting a home improvement loan for making renovations to your home can be a straightforward business, provided you submit all your documents and have a healthy credit score. In addition to regular KYC document, income and property documents, an Architects Certificate is required with details of all the works to be carried out.
Most lenders offer home renovation loans under their banner of home loans. While reviewing your loan application, lenders generally look for a healthy credit portfolio and a good credit score amongst other factors like having a stable employment history with consistent increase in salary.
Current Home Improvement Loan Interest Rate
With a growing number of people becoming credit aware, it is obvious that in order to avail the best interest rate, one needs to have a healthy credit score. Typically, you need a minimum credit score of 750 for lenders to approve your loan application. A credit score of 750 or above reassures lenders that you are credit worthy and have demonstrated responsible repayment behavior. It is also an indication that you are at low risk for defaulting on your loan obligations.
You will be offered the most attractive terms and conditions (like a lower interest rate or bigger loan amount) if you have a good credit score. If you have a low credit score, spend some time to improve it so you can take advantage of the best loan offers.
Currently, home improvement loan interest rate ranges from 11.50% to 20% per annum % or more, depending on the lender and your individual credit history.