Are you stuck in mid-way during a home décor project due to financial constraints? Are you looking to enhance the interior of your house but the lack of finance is a hurdle? If you are, an instant personal loan is just what you might need. A personal loan, a fast cash loan, or an online loan is all the same thing. They provide you quick access to cash at a minimal interest rate. There is no point eroding savings when you can access personal loans and payback easily through fixed installments. Let’s have a look at the finance options available to you for your home improvement project.
A personal loan is ideal in most scenarios as the rate of interest is lower than other methods of finance. A personal loan is an unsecured loan, meaning there is no requirement of pledging collateral to obtain the loan. This makes fast cash loans one of the most risk-free loans. With an excellent credit rating, instant cash loans can be the cheapest way of financing your home décor project.
Home Equity Loans
In this type of loan, you use the equity of the house as collateral to obtain the loan. The equity of the house is the difference between the value of the house and the mortgage you have paid for the house. The house equity increases as you make more mortgage payments and also if the market value of the house increases. You can borrow a percentage of your home’s equity. Depending on the financial institution, you can borrow as much as 85 percent of the equity.
Although these types of loan are available at low-interest rates the bank holds equity as collateral, However, if you do not pay your installments as per the agreement, the lender can foreclose your house, and the possibility of losing your home becomes evident.
On the other hand, if the value of the house decreases since you purchased the home and you owe more than the value of the house, the lender will not provide you with the loan.
Unsecured Home Improvement Loans
If pledging the house as collateral scares you, there are other ways you can obtain a loan to finish your home décor project. Most banks provide unsecured loans to customers for home repairs and improvement. The limit of such borrowing varies from one lender to the other. Some lenders offer home improvement loans up to $100,000.
However, with this type of loan, the repayment period is less compared to equity loans. You will also have to pay a significant interest rate with an unsecured home improvement loan. Due to the high interest rates, you may end up paying thousands of dollars as interest, which can make the home décor project expensive.
A credit card with a high credit limit can be tempting. You might want to use it to purchase the equipment and make the necessary payments. However, this can be a critical mistake. Credit cards can be costly. These type of loans are one of the most expensive. You would have to pay interest rates higher than 15 per cent. With this rate of interest, you may end up paying more interest than the principal amount. Your finances could be severely crippled with you having to pay interest rates for several years.
The personal or instant cash loan is one of the best types of loans. The approval process is quick and easy. The repayment tenure is flexible and comfortable. The interest rates are affordable, and you can choose the exact amount of money you want to borrow depending on your needs.