Redesigning a popular home, replacing windows, doors, or installing new flooring will cost square meter owners almost as much as the value of the apartment itself. It is unlikely that you will be able to save the money you need, save for many years, and continue to live in uncomfortable conditions – not all will satisfy you.
Along with the new trends in the construction market, the lending sector is also lagging behind. Along with the needs of the borrower, the range of banking and private investors offers is growing and expanding, so many financial institutions have created a new product called “home improvement loan”. The new program is a narrow program, as money is only spent on the purchase of construction materials or payment for construction services.
Users of such credit have already been able to appreciate the advantages and benefits of this credit over conventional consumer loans. Before the appearance of loans for the repair of an apartment or house, many borrowers carried out construction and finishing work directly with the help of consumer loans.
Bank home improvement loan
To make it easier for readers to know exactly how a home improvement loan is drawn up and what the borrower must meet, let’s consider the most popular loan offered by a trusted lender, Bank.
Bank credit terms and conditions
1. The maximum loan amount for the decoration or repair of the dwelling shall be USD 20 000.
2. Credit shall not oblige the borrower to offer a security.
3. A home repair loan can be used as financial assistance for home renovation.
4. A repair loan can be spent to buy a piece of land, a parking lot, a garage or a warehouse.
5. The monthly loan payment will not bother you as the loan can be drawn up for 10 years.
6. The loan may be repaid early.
When you get a home repair loan, you can apply for insurance in the event of a job loss or serious illness.
Other repair credit terms
Because you can get a loan not only for repairs but also for a small real estate item, the terms of the same program are slightly different.
- If the purpose of the credit is to purchase real estate, it must be registered in the real estate register and cadastre of the borrower no later than 90 days from the date of signing the credit agreement.
- If the money received on the loan is to be used to repair the borrower’s personal home, then the client must be the owner of the space to be repaired. In the case of a two-person repair loan, one of the borrowers must be the homeowner.
Requirements for the borrower to obtain a loan
- The next borrower must have a monthly net profit of at least $ 350.
- If the loan is applied for 2 persons (borrower and co-borrower), the total monthly income of both persons must be at least 725 USD.
- If the next borrower has a spouse (or spouse), that person may be a co-borrower or must agree to verify the information.
- The borrower must have had a stable income in the same job for at least the last 6 months. If you have recently changed employer, your probationary period must be successfully completed in order to qualify for the credit.
- If the loan is to be repaid through a source of income other than wages, the borrower must officially certify the income.
- In order to qualify for a home repair loan, your total monthly expenses may not exceed 40% of your monthly income.
- The borrower may not have past due loans to Bank and other creditors, nor any outstanding loan. All bills received in the name of the borrower must be paid on time and in full.
- If the borrower receives his main income in a currency other than the USD, the bank may impose restrictions on him. In this case, each situation is considered individually.
Bank’s offer to cover repair costs is not the only one. Potential borrowers can analyze similar programs at Luminor and Bankate Bank to find the most comfortable terms.
Bankate credit conditions
1. The maximum amount of the loan is USD 15,000.
2. Money is even given to clients of other banks.
3. The loan is executed within 15 minutes.
4. No collateral or guarantor is required to get money for home repairs.
5. Maturity – up to 5 years.
6. There is no down payment.
As an alternative to a small repair, you can use a credit card from any bank. You will be able to return the credit card free of charge during the discount period or depending on your availability. Then the card will have a consumer credit function.