Are you considering having your home renovated? If you are considering it, it is a difficult project to undertake in Singapore because the prices are quite high for such improvements. Even if you are just planning to do simple upgrades to your kitchen or add some new spaces, the amount you need to make is quite high and it can drain your bank quite easily.
A good way to prevent your savings from running dry is by getting a personal loan through a moneylender or a bank. However, if you do go to a bank, they will take days before they can approve or disapprove your loan application.
They would also check every aspect of your financial background and credit worthiness. If you have a bad mark in your credit history, your chances of getting a personal loan lower down immensely.
Fortunately, a good alternative to banks are moneylenders, who also offer personal loans of wide varieties depending on a user’s needs.
Here are the reasons why moneylenders are good for personal loans
- They are recognized by the government – In order to ensure that the public are not victimized by false moneylenders, borrowers can easily check the website of the Ministry of Law to verify if the moneylender they wish to work with is licensed or not. When they are licensed, the borrower can be assured that they will get the right loans they need without worrying about the rates being too much or too low.
- Application is easy and simple – Licensed moneylenders know that you are seeking personal loans which are approved fast and given fast. Borrowers simply have to apply through their website or call and wait for the moneylender to call back for the initial screening. When the borrower passes the screening, they will be asked to bring their documents for further review to their office and finalize the loan process there.
- No Credit History Check – For individuals with bad or low credit history, getting a personal loan in a bank is difficult. However, if they apply through a moneylender, they will not need to pass their credit history since it will not be checked or used to determine your personal loan application.
- Quick Approval – Considering the fact that bills all have deadlines you need to catch to avoid late fees, it is important that your personal loans are given to you in the quickest time possible. If you apply with a moneylender, they will be able to approve your applications within hours and you can get the money not long afterwards.
Why You Should Get a Personal Loan for Your Home Improvement Project?
Getting a personal loan for home improvement projects can be through a renovation loan and it can cover the following:
- Repair Work – Under renovation loans, you can use the money to repaint your walls, change the décor, fix the roof, adjust the flooring and do other extensive repairs.
- Remodeling – any type of renovation work is covered under the loan.
- Additions – You can add any space you want when you get this loan.
- Décor Changes – If you want to restore your heritage home to its former glory or have it sport new décor, renovation loans are the way to go.
Renovation loans are also very cheap as compared to standard personal loans and does not come with a very high interest rate. You can also customize your renovation loans based on your needs and the conditions of this loan is more flexible.
If you are planning to apply for a personal loan with a moneylender for your home improvement and other expenses, here are the requirements that you have to match:
- You must be a Singaporean citizen or a permanent resident of legal age. If you are an expat, you must have a valid working permit or S-Pass.
- You must have a photocopy of your NRIC Card or National Registration Identity Card.
- You must also provide your proof of income – bank statements, pay slips and income tax return. For self-employed borrowers, they must present their income tax returns and their proof of income.
- For foreign borrowers, they will need to present a copy of their tenancy agreement with their current residence.
- Borrowers will also need to submit their proof of address, either their electric bill or their mobile phone bill.
What to Remember Before Going to Get Renovation Loans?
Before you sign on your renovation loans with your chosen moneylender, it is important that you consider the following so you can use the loans to their fullest potential:
- Determine what you need – In order to make the loan perfect for your project, you have to identify all the areas you will need to renovate or refurnish. Make sure to pick the areas that require immediate renovations rather than picking the ones that can be done last.
- Ask a Contractor – Do not do your own renovations as much as possible, especially if you are planning to get funds from a personal loan. Seek the recommendation and expertise of contractors to see how much you will need for your renovations. They will also help you save up money since they can identify what parts or materials you will need.
- Identify your budget – When making a project, it is ideal that you have a clear budget in mind so you do not have to go over your budget when doing your renovations. Make sure that your budget covers everything you will need for the project.
Owning a house is an investment all of us should consider as we are starting our careers since it is going to be of use in the future. When we purchase our dream house, we must treat it with love and care, maintaining it so that the future generation could benefit from it.
If you do not have enough money to do so, do not fear getting a personal loan since it will help you out. Just plan accordingly so you can pay your loans easily.