The rainy season has come, with the coming of the rain can tell us that the roof of the house has leaked. Apart from leaking roofs, cracks usually occur on walls, peeling paint, and many other things that often become problems that arise in each person’s home.
Home renovation is a reason and solution to fix problems that arise in a home. However, there are many obstacles that we need to consider in renovating houses, one of which is funding constraints. However, this can be overcome by seeking loan funds for people who want to renovate their houses but have difficulty in funding.
There are various variants provided by a bank for people who want to renovate their homes. There are 2 types of financing or home renovation loans, namely multipurpose loans and renovation loans. If there is an urgent need, you can use both types of multipurpose loans.
In every bank that has developed in this country, all of them have multipurpose credit products. The credit can be used for consumptive purposes. This credit can take the form of children’s education, health, for the purpose of buying a car, for renovation costs, and so forth.
To renovate a house sometimes requires a large enough amount of funds so that sometimes the alternative to doing renovations is to pawn the guarantee of a house certificate so that renovation funds can be obtained quickly with a safe guarantee that is the house itself.
Through multipurpose loans, funds can be submitted in the range of $ 2,000,000 up to $ 2,000,000,000. The tenor granted also has the freedom to be a year, two years, or up to a dozen years.
In addition, the interest given to multipurpose loans also varies from 9% to 12%. High interest rates are a disadvantage of multipurpose loans.
But there are advantages, namely collateral that is determined not only in the form of land or buildings, but can also be a vehicle. In addition to that, multipurpose loans can be disbursed 100% as needed.
When it comes to excellence, renovation loans are somewhat different from multipurpose loans because renovation loans incur a much lower interest rate, have a longer tenor, and a ceiling that is greater than multipurpose loans.
The disadvantages of own renovation credit include:
- Located on the building aspect. We choose a renovation credit so that the collateral will be the house that will be renovated.
- The amount of funds disbursed can reach 80% of the needs of the RAB or planned budget for building a house renovation, so we bear the rest.
Determining Priority Scale for Home Renovation
At the time of house renovation is needed urgently we must determine the priority scale not desire so do not rush to come to a bank. Because the priority scale determines an estimated funding need for a renovation.
There are four posts that need funds that must be prepared if you want to renovate a house, including:
The need for a building permit or building permit to the village office if we want to change a new form from the previous one.
- Post repairman or contractor fees
In order to get competitive value, we should be able to collect as much information about the services of builders or contractors. In addition, also calculate whether the renovation uses bulk or daily and we should consider the advantages and disadvantages.
- Material costs
The large material cost depends on the choice of material and the scope of the renovation itself. If the choice of material and the scope of renovation to eat quality will require a higher cost, but conversely if the choice of material and the scope of renovation is of low quality then it will only require a lower material cost.
If you want to be more practical then the matter of material selection and scope of renovation can be left to the services of the craftsman or the contractor itself because the cost of the material may be cheaper.
- Unforeseen expenses
We recommend that if you want to renovate a house we have to prepare some or some funds for unexpected costs, for example the safe portion is around 20%.
Are You Confused Looking for the Best Multi Purpose Loan Product? Pay attention to the solution!
We recommend that House Renovations Prepared from Far Away
In choosing the source of funds to renovate a house, we should consider whether the funding needs are urgent or not so do not just borrow multipurpose loans or renovation loans because both of these funds are consumer credit classes.
As a suggestion, funds for home renovation should come from your and your family’s savings. In this case, the problem of renovation should have been thought of ahead of time, so you don’t get overwhelmed when your house is damaged.