Thinking about spicing up your space? Well, a home improvement loan is like your trusty sidekick. It hands you the cash upfront to kickstart your project, and then you can take your time paying it back in easy monthly chunks.
The cool part? While you’re enjoying the snazzy upgrades, the project might even bump up the value of your home. It’s like a win-win – you get the dreamy changes, and your home gets a little extra love on the market.
But which lenders to choose among all the options out there? That’s why we are here. Let’s dive into the following article to learn about the best personal loans for home renovation.Â
Why Do You Need a Home Renovation Loan?
When it comes to funding your home makeover, house renovation loans stand out for some pretty cool reasons. Let’s break it down.
Lower Interest Rates
Picture this – you’re jazzing up your home, and you need some cash. You could go for a personal loan, but hold on – those usually come with high-interest rates because they’re unsecured. Now, a house renovation loan? It’s a different story. You can snag it at the same rates as a home loan since it’s secured against your home ownership. Sounds way more attractive, right?
Tax Benefit
Here’s another perk – a house renovation loan isn’t just about sprucing up your space; it could also put a smile on your face during tax season. You get a tax benefit on the interest you pay. Like, up to Rs. 30,000 per year (thanks to section 24). This deduction fits into the overall limit of Rs. 2 lakh for interest payments on home purchases and house renovation loans combined. Imagine saving up to Rs. 10,300 on your taxes – that’s some serious bonus points for your wallet!
Minimal Documentation
Now, we know paperwork can be a real headache. But fear not, because house renovation loans keep it simple. Think basic stuff like your ID, income proof, some photos, and your property title deed. If you’re already buddies with a housing finance company (you’ve taken a home loan from them), the paperwork gets even easier. Easy peasy!
Quick Processing
Ever been stuck in a waiting game? Not with house renovation loans. The process is a breeze – minimal paperwork means quick approvals. Your renovation dreams can turn into reality without the agony of a long wait for your loan to get the green light. Time to start planning that dream makeover!
5 Best Quick Personal Loans for Home Renovation
SoFi: Best for Big Improvement
SoFi is an online lending platform that can provide personal loans ranging from $5,000 to $100,000, making it a great option if you need funds for a big home improvement project.
What sets SoFi apart is that they don’t tack on common fees, and they’re even lenient on late payment fees. If you get approved, you could have the loan in your hands on the same day.
Here’s a perk: they offer unemployment protection. If you lose your job (through no fault of your own), you can hit pause on your loan payments for a bit. It’s worth noting, though, that SoFi typically looks for borrowers with really good to excellent credit scores.
Get personal loans with low fixed rates, allowing you to borrow as much as $100,000. What’s great is, there are no origination fees, no prepayment penalties, and no late or overdraft fees to worry about.
Applying is a breeze with their simple online process, and you’ll have live support available every day of the week. So, you can get the funds you need without any hidden costs and with support whenever you need it.
LendingClub: Best for Small Projects
LendingClub provides personal loans starting from $1,000, which can be handy for those smaller home improvement projects. Keep in mind that the minimum loan amount might vary based on state regulations.
It’s good to know that LendingClub includes a 3% to 6% origination fee, so it’s something to factor in when you’re checking out different loan options. Make sure to consider these details to find the right fit for you.
See what rate you qualify for without affecting your credit score. It’s a quick and easy process. Once approved, you’ll get your funds fast. They are flexible with both the amount you need and the time you need to pay it back. Plus, there are no penalties for paying early. It’s hassle-free and tailored to fit your needs.
LightStream: Best for Great Credit Score Holders
LightStream has your back with loans ranging from $5,000 to $100,000, and the best part? No fees are involved. You’ve got a comfortable 24 to 144 months to pay it off, depending on how much you borrow.
LightStream is known for shouting out some of the most pocket-friendly interest rates on loans. They even throw in a 0.5% discount if you set up automatic payments – sweet, right? This is a top pick if your credit score is in the good to excellent range.
And here’s a cool feature: if another lender throws a lower rate offer your way for an unsecured loan, LightStream’s Rate Beat Program might just swoop in and give you an even better deal. It’s like having a financial superhero in your corner!
LendingPoint: Best for Fair Credit Holders
LendingPoint is here for you, offering personal loans ranging from $2,000 to $36,500, even if your credit score is just okay. The best part? You can see what loan options are on the table without it affecting your credit score.
They give you the freedom to pick a repayment plan that suits you. Keep an eye out, though – there might be a 0% to 10% origination fee. The cool thing is, you can decide if you want to subtract it from or add it to your loan amount. It’s your call, making it easier for you to tailor the loan to fit your needs.
Worried about your credit score? Fear not! You can check your rate with them, and it won’t leave a mark on your credit score. Their application is super easy – just a few clicks, and you’re on your way.
If you need the funds pronto, once approved, you could have the cash in hand as soon as the next business day. And what sets them apart? Their cutting-edge technology. They take the time to understand your unique credit situation, making the process smoother for you.
Choose a term that works for you – anywhere from 24 to 72 months. And guess what? Fixed monthly payments and simple interest make budgeting a breeze.
But don’t just take our word for it. Thousands of folks on Trustpilot have given us five stars. Yep, you heard that right – five stars! And if you’re a Better Business Bureau checker, you’ll be happy to know we’re sporting an A+ rating. We’ve got your trust and your back!
Upstart: Best for No Credit Holders
Upstart is a cool online lending spot that does things a bit differently when it comes to loan applications. They don’t stick to credit scores as the be-all and end-all – in fact, you might not even need a credit score to get the ball rolling. How neat is that?
Now, they might throw a few more questions your way, like digging into your education and work experience. Oh, and you might need to link up your bank account when you throw in your application.
For those with a credit history, there are still some ground rules to follow, but it’s not all about the credit score. And watch out for origination fees – they can be anywhere from 0% to 10%. Just a heads up on that one.
So, Upstart is like the friendlier, more laid-back lending buddy who wants to know more about you beyond just the numbers. Cool, right?
What are the Benefits of Getting a Home Improvement Loan?
Thinking about sprucing up your home? Well, home improvement loans are like superhero tools for homeowners looking to make essential or fancy changes to their space. Here’s the lowdown in simple terms:
Manageable Payments
These loans come with fixed interest rates, making it super easy to handle payments. Plus, they let you borrow a chunk of cash all at once, so you don’t have to stress about juggling a gazillion bills.
Boost Your Credit
Paying on time isn’t just good for your bills; it’s like a secret weapon for your credit score. A better score means easier and cheaper borrowing in the future. Plus, having a home improvement loan adds variety to your credit history, which is like giving your credit score a high five.
Finance the Big Dream
Got a massive project in mind? Some lenders are throwing around up to $100,000 for personal loans. Now, not everyone will hit that jackpot, but if you’ve got the income to handle the monthly payments, you’re in business. No need to stress about losing your home – these loans keep things unsecured and safe.
Bump Up Your Home’s Value
Dreaming of boosting your home’s value? A home improvement loan is your ticket. It lets you tackle grand projects you couldn’t save up for otherwise. And guess what? If you ever decide to sell, you can get back some of what you invested and make your home the star of the market. It’s like giving your home a makeover and a money boost!
Also Read: Quick Approval Wedding Loans for Your Big Day 2024
Bottom Line
If you’re thinking of jazzing up your place, a home improvement loan could be the answer – quick cash, and you can pay it back in a way that suits you. And our article should help you with some of the best home improvement loans out there.
Now, here’s the lowdown: If your credit score isn’t doing a happy dance, these loans might come with higher rates and extra fees. Just a heads up.
But before you dive in, take a sec to think about other options. There might be some cool alternatives that fit you better. It’s like checking out a few outfits before you settle on the perfect one. So, explore a bit before you commit to a home improvement loan. Because your home deserves the best!
