5 Home Improvement Finance Options to Consider

Any kind of home improvement plan, big or small, can be overwhelming with regard to your energy and finances. If you are looking to reform your home from ‘plain jane’ to ‘outstanding’, but don’t know where to get the funds to back your makeover, you may want to consider some Home Renovation Loan options. Here are some options to help you with your home renovation project.

  1. Cash

Cash is obviously the best and easiest way to fund your home improvement plans. With this, you won’t have any pending future payments and you won’t be putting your home equity on the line. It is always more sensible to wait until you have the cash to start enacting on such plans. This may mean you’d have to take on one small project at a time. You may want to begin on safety improvements as a priority. Or prioritise on any other pressing issue you feel is important and you can afford.

  1. Credit Cards

 If the renovation you are planning is on a small scale, consider your credit cards for funding. You may also use them only for the purchase of your materials. A great introductory offer like a 0% interest for a period of time on your credit card can be a good choice. Some cards also come with rewards or a cash-back value at a few points of the total amount you spend. There is also no paperwork needed for established credit lines. But, you need to be careful about the possibility of high interest rates.

  1. Construction Loan

 Such loans are used to build a home or make major renovations. You may want to consider it if your renovation plans are going to cost you more than the equity you have. Alternatively, if your plan requires extensive and additional construction in your renovation plan, then construction loans could be your one-stop shop. Such loans, generally, are available for short tenors. Another advantage of this type of loan is that some lenders like Bajaj Finserv disburse the amount into your account within 72 hours.

  1. Personal Loan

 If you go for a Personal Loan to finance your renovations, you borrow a fixed amount and pay a fixed amount over a certain period of time. Usually, a maximum tenor for Personal Loan goes to 60 months like at Bajaj Finserv. For medium-sized projects, such a loan may be a good fit. They are easy to apply for, don’t need collateral and tend to offer higher loan amounts than credit cards. On the flip side, you need to know that interest rates tend to be higher in case of unsecured loans. They may also not get you any tax benefits.

  1. Refinance Your Mortgage

If you have a home mortgage running and want to renovate it, you can go for a refinance of your mortgage. It may even get you a lower interest rate as long as they don’t spread the cost of the renovations longer than the duration of the actual renovation.

When you do this, you will be replacing your current mortgage with a new one and at the same time taking cash out for your home renovations. This may benefit you, if mortgage rates are low and help you fund big projects at the same time.


Funding your dream home is a tough job. But, what can facilitate this journey is a loan. All you need to do is plan it well in advance. Fret not if you haven’t. You always have the option to apply for a loan and plan your redesign or upgrade your interiors. Consider the option of a Personal Loan with Bajaj Finserv to fund your home renovations.

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