Being a homeowner calls for a continued commitment towards the improvisation, renovation and modernization of home. Such quality maintenance not only improves the aesthetic appeal of the apartment but increases the value of the property as an asset. Listed below are five ideas for getting a budget for apartment modernization.
1. Home renovation or improvement loans
Home improvement or renovation loans are formulated to assist homeowners looking for assistance for their home maintenance or apartment modernization. One can choose home improvement loans when:
• The property belongs to the applicant, and he or she is willing to mortgage it for loan
• Applicant desires for an extended repayment period
• The required financial fund or the loan amount is large
• Applicant desires to claim the tax benefits defined under the old regime
With a repayment tenure of 30 years and attractive interest rates, it is a prominent choice for budget procurement. Specific financial platforms also offer additional discounts if the primary applicant is a woman.
2. Top-up on home loans
Top-ups on existing housing loans are a viable choice for budget procurement. An applicant is eligible to apply for a top-up if he or she has made regular repayments on the home loan. The interest rates offered on top-up loans vary based on lender criteria. While some financial platforms allow top-up loans on the same interest rates as that of a housing loan, others might charge marginally higher interest rates for a top-up on a housing loan. It is advisable to read through the home loan eligibility criteria set by the lender and then make an informed decision.
3. Personal Loans
Personal loans are unsecured loans which can be availed to meet any personal requirements of the applicant. A personal loan should be availed when:
• The applicant has no property to be submitted as collateral
• Short term budget requirement
• When an applicant is salaried or employed and has a continued source of income
• Applicants require immediate financial solutions to needs
As these loans are sanctioned based on credit score without any collateral or security submission, the nature of these loans is considered risky. Hence the interest rates are higher when compared to home improvement loans and top loans on housing loans.
4. Premature withdrawal on FDs
The fixed deposit can be liquified to mitigate the immediate needs on a budget. Flexible platforms such as PNB Housing Finance follow customer-friendly norms to suit every requirement. However, a premature withdrawal penalty charge will be incurred, which should be borne by the account holder.
5. Equity shares
Selling equities or stocks is another means for budget procurement. However, since the value of each stock is tied with market performance, applicants should make a thorough comparison for an informed decision.
Final thoughts
Above mentioned are some of the ideas for budget procurement. However, an informed decision should be made after comparing necessities, lender interest rates and eligibility criteria.
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