Diwali is the season of new beginnings. We clean every bit of our home, decorate it, and open our homes to guests. It is the time for family and friends to come together. For several people, this is also the time to renovate the house. The painting needs to be done, or the old and worn-out sofa should be thrown away, and a decade-old fridge has stopped working. The money required for all these expenses can be huge, and all of this can happen at once. A Diwali home renovation loan can help you here, so that you do not waste your precious time and money.
A personal loan for home renovation is a convenient way to manage a large amount of money over time. You can take a personal loan to clear all the bills and pay in installments. This way, you also save some money for the festival.

We will explain how you can take the loan, what you can use the money for, and how it will help you.

Why people go for a personal loan during Diwali

When it comes to Diwali, everyone goes shopping. Everyone buys something new, be it curtains, paint, or some new kitchenware. Some people buy gifts for their friends and family, sweets, and pooja items. The bills add up quickly. A personal loan for home renovation is a smart way to manage all these expenses.
The personal loan for home renovation is useful because it is an unsecured loan. You do not have to mortgage anything to avail of this loan. Additionally, unlike other secured loans, you have a say in how you want to spend the money. The money from the personal loan can be used for any purpose. So you could use one loan to renovate the painting, repair the washroom, and buy a new dining table with it.

Diwali home renovation loan is popular among people staying in Tier 2 and Tier 3 cities because local contractors and furniture dealers demand large amounts of money upfront or in installments. With a personal loan, the money is directly transferred to the dealer’s or contractor’s account.

What you can do with the personal loan

Below are the ways in which people use a Diwali home renovation loan.

Renovation and repairs
This includes painting the house, laying new flooring, a new false ceiling, waterproofing, plumbing, or repairing a room. You could also get small but essential items such as new switches and lights fixed. It falls under home improvement and is the most common use of a personal loan for home renovation. It is also the most effective way to showcase your home improvement results with the money you have.

Furniture
You can use the furniture purchase loan for revamping the look of your home. Whether you need a new sofa set, beds, or a dining set, you can purchase them with the money. A furniture purchase loan for home renovation ensures that you do not have to wait to furnish your house.

Appliances
You can also use the loan to buy new appliances such as a refrigerator, washing machine, air conditioner, microwave oven, and television set. During festive seasons, taking an appliance loan online is feasible so that you can buy electronics that are on sale. Diwali home renovation loan therefore helps you to buy them at a lower price. You can repay the loan in easy installments to make the most of the offer.

Additionally, you could combine renovation, repairs, furniture, and appliances in one personal loan for home renovation.

How a personal loan works

Applying for a personal loan for home improvement is now a seamless process. You simply download the app, check your eligibility, upload your KYC documents like PAN card, Aadhaar card, and bank statement, and get your money transferred to your bank account if you are approved for the loan.

A brief description of how this works: InstaMoney is a digital lending platform. When you apply, you are connected to one of InstaMoney’s lending partners, an NBFC, who approves your request. Thus, you get an easy, paperless experience while a registered NBFC lends the money to you. Here, you can avail loans from ₹5,000 to ₹1,00,000 with easy repayment options. However, the loan amount, tenure and eligibility criteria depend on your profile, income and credit history. You need not have payslips like typical banks would expect. Your previous credit history does the deed for you. Although approvals aren’t guaranteed, if you fall into the eligibility category and the information is accurate, you are entitled to get the desired loan amount.

The cost of borrowing

It is important to understand the cost of borrowing before applying for a personal loan for home renovation. A personal loan is an unsecured loan, and therefore comes with a higher interest rate than a home improvement/purchase loan or gold loan. The interest rates on personal loans can vary significantly, so it is important to check the rates before applying. Secondly, there may be a processing fee. The processing fee is a one-time fee that is charged when the personal loan is disbursed. Processing fees vary from lender to lender and are generally a certain percentage of the loan amount plus GST.

It is important to note that good lending companies will show you the key fact statement that details all the essential aspects of your loan before finalizing the application. Always be clear about the total cost of the loan, the monthly installment amount, and the payment due date. This way, you avoid any unpleasant surprises after taking the loan. Ask questions if there is something that is not clear to you before applying for the loan.

Tips to borrow smart this festive season

  • Borrow only what you need. It is tempting to take the full amount offered, but a bigger loan means bigger EMIs. Make a list of what your home improvement plan actually needs and borrow for that.
  • Check that the EMI fits your budget. Look at your monthly income and expenses. Your EMI should feel comfortable, not tight. Keep all your loan payments well within what you can repay each month without stress.
  • Compare before you buy. Festive sales are everywhere. Compare furniture shops and appliance brands, and grab genuine discounts. The less you spend, the smaller your loan.
  • Pay on time. It is essential to pay your EMIs on time since it makes future borrowing easier and cheaper. Therefore, set a reminder so that you don’t end up missing a due date.

Make this Diwali brighter, without the money stress

Festivals are always better when they’re filled with joy and far away from stress. When the renovation, appliances, and furniture are all needed at once, a Diwali home renovation loan can help you manage the expenses calmly. This sort of Diwali home renovation loan enables easy monthly payouts so that these expenses don’t feel heavy on your pockets.

Moreover, if you are looking for loans that offer a fully digital process, you can check out the InstaMoney app. This app offers instant personal loans. Follow the easy process of checking your eligibility. You must see and understand the terms and conditions clearly before you apply for any personal loan so that you can conclude what actually works for you. Read the fine print to enjoy a joyous Diwali this year.

Frequently asked questions

How quickly can I get a Diwali home renovation loan?

When you apply for an instant Diwali home renovation loan on an app like InstaMoney, the process is usually swift since it is completely online. You should check the eligibility criteria and complete the E-KYC process by keeping your PAN, Aadhaar, and bank statements ready. Once approved, you will receive the amount shortly.

Do I need to give any security or asset as collateral for this loan?

No. Since a personal loan is unsecured, you need not give definite collateral such as your home, gold, or any other valuable asset. Hence, this very reason makes it stand out for festive home improvements, especially when people search for instant loans without a lot of extra conditions.

Will taking a loan affect my credit score?

Taking a loan and repaying it on time can actually help your credit score over time. What hurts your score is missing payments or paying late. So borrow an amount you can comfortably repay, and pay every EMI on time.