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If you have a house and feel that it urgently requires some repairs, but the cash at hand is not enough, one of the top funding options is taking a renovation loan. The loan allows you to fix issues with your property immediately and then repay in installments. When considering a renovation loan in Singapore for the first time, so many questions might be running through your mind. What work can I do with the loan? Will the lender take over my home if I am unable to repay the loan? Keep reading to get answers to all these questions and make the decision about renovation loans.
Is it A Secured Type Of Loan?
Renovation loans in Singapore are not secured loans. Rather, it is an unsecured type of credit, which implies that your house is not taken as collateral. Therefore, your house will not be at risk of getting repossessed if you are unable to repay. However, this does not mean that you should be lax on paying the loan. If you do not repay in line with the loan terms, there is a serious risk of your credit score getting damaged.
What Repairs Can You Do With A Renovation Loan?
A renovation loan in Singapore can be used to handle most of the works targeted for your property. Here are some of the major works that you should consider:
- Floor repair works.
- Creating extensions in your home.
- Changing the roofing.
- Electrical works.
- Plumbing repairs.
- Start a profitable HVAC business.
- Wall painting.
- House insulation enhancement.
While you can do almost any type of renovation with the money, it is advisable to direct it only to the areas where you will get the highest value for money. Consider answering this question, “What will be the new value of the house after the renovation?”
Can You Get A Renovation Loan If You Are Not The Owner?
No, you can’t. Renovation loans in Singapore are targeted at property owners because they have the responsibility of maintaining their homes. If you own a house, perhaps because it was left to you have simply been asked to take over its custody, the next best loan option for repairs is a personal loan.
A personal loan is an unsecured form of credit that provides borrowers with funds but does not dictate how they will be used. Once the loan is approved and money credited into your account, go ahead and use it for home renovations.
Can You Include A Renovation Loan In A Debt Consolidation Plan?
Yes, you can. Business debt consolidation plans in Singapore are used to help people combine high-interest debts into a single, preferably low-interest loan. Because debt consolidation only works with unsecured debts, you can comfortably include renovation loans in your plan.
What Is the Easiest Way To Apply For A Renovation Loan?
In Singapore, there are many lenders willing to work with you when looking for a renovation loan. However, making multiple applications is never easy for most Singaporeans because of the different terms and conditions. To make the process of renovation loan application easy and fast, you should use Lendela, which works in just a few steps.
- You visit Lendela website to make a short application.
- Lendela receives offers from different lenders.
- You select the preferred offer by reviewing the terms and conditions. Put more emphasis on the interest rate of the loan.
- Lendela books you an appointment for signing the loan agreement.
- Finally, sign the loan agreement, and the money is released to the contractor working on the renovations.
As you can see, renovation loans come in handy to help property owners repair their premises. Why stay in a house with a leaking roof or damaged wood floor when you can easily get a renovation loan to fix the issues and repay in installments?
