Until recently, one of the ways to get a loan for home repairs was ordinary consumer overdraft – a handy loan that can be used in installments, but pay only for a specific amount of money. This kind of credit mechanism is very similar to a credit card, but with the card you will not be able to get enough repairs: up to two of your salaries.
Loans for home repairs
Home repair has become a common necessity for modern people, like buying a car, apartment, or travel voucher. As a result, banks have begun to adapt to the wishes of their customers and have developed new credit products specifically to meet this customer need. Thus, a new type of credit emerged: a home improvement loan (often this financial instrument can be called a “home improvement loan or a construction loan”). Almost all popular banks have already developed a home improvement loan in Latvia and here’s what it looks like for every creditor.
Bank decided to create a loan that would help improve the housing conditions of its customers , regardless of the goals set. That’s why Bank offers to use your credit to:
- purchase a home or other new home;
- housing construction, land acquisition;
- major repairs ;
- for the purchase of a new home before the sale of the existing one.
In addition, Bank offers its borrowers free advice. Already in the second conversation with the lender the client will be informed about the credit options and the maximum loan amount. The loan can be repaid early, but the customer can make monthly payments directly from his account in Internet Banking.
Bank home loan terms and conditions:
- The loan amount is up to 10,000 euros.
- Repayment term – 6 months – 30 years.
- First installment .
- The loan cannot exceed 85% of the price of the house to be purchased.
- The borrower’s net income must not be less than EUR 600. If the loan terms require a co-borrower, the net borrower’s net income must be between $ 800 per month.
Practically focused on providing repair loans, this lender offers its borrowers the most important questions to determine the amount of credit they need . The “questionnaire” developed looks simple and at the same time the customer understands that the bank cares for him. What questions do you have to answer:
- In what building will be repaired: new, Soviet, pre-war.
- What is the area of the dwelling to be repaired: from 1 to 175 m2.
- What is the condition of the dwelling today: good, normal, bad.
- What components will be replaced during the repair : TV, windows, floor, sofa, other furniture and electrical equipment in the kitchen.
- Do you need to repair your amenities: Yes / No.
Once the answers have been accepted, the “Calculate” button and the web interface will give us a rough idea of how much the upcoming repair will cost us: the total cost of materials, labor and other items we selected in the questionnaire. Similarly, these results will be displayed in two amounts: more expensive and cheaper based on the price category of services and materials. Final line: The monthly payment amount .
Repair loan conditions at bank:
- The loan amount is up to 15 thousand euros .
- Interest rate from 9% per annum.
- Repayment period – up to 5 years.
- Get your money in 15 minutes .
- Money is given to the customer of any bank.
Home improvement loan
- The loan amount is from 10 to 25 thousand euros.
- The interest rate is fixed – from 6.9% .
- Refund period – 1-7 years.
- No compulsory down payment.
- The decision is made within 1 business day.
- Without housing valuation.
- Without collateral grade.
- Credit is possible even if the home is not owned by the borrower .