Are you planning to take out a loan for repairs? There is something to think about

Repair today is an expensive event. Sometimes it takes a long time to do it gradually, as the accumulation of funds. An alternative to this is a loan for repairs, which is allowed to reduce the time for conversion, and then pay off the debt, living in a beautiful and cozy apartment.

Today, banks offer several options for credit decisions for the transformation in an apartment or house. Almost the same conditions and in the event that you need car repairs on credit.

The easiest way is to take an untargeted loan. For its registration, you need a minimum of documents: a passport, a copy of the labor, a certificate of income. In some cases (depending on the amount), the bank may require the participation of a surety. At the same time, you do not need a deposit and you will not have to report what you spent money on. It is advisable to resort to this option in cases when you do not need a very large amount. But it should be remembered that interest on such a loan is the highest (from 12 to 18%) and the maturity date will be no more than five years.

Another option is a non-targeted loan secured by a car or real estate. Such a loan for repairs is better to take if a large amount is required. In this case, the interest will be lower. And to get such a loan is easier, because it will give you a mortgage even with small incomes (according to the certificate from the place of work). However, the registration of the collateral itself will require certain expenses (valuation, insurance, Cops).

And, finally, if large-scale transformations are required, it will be necessary to issue a targeted loan for repairing the house. This type of lending differs from the non-earmarked by a much larger amount to the issuance and not by such high interest as the first two. Designing a targeted loan will take a little longer, since you will need to confirm its purpose.

To take it, you need to contact the bank, find a construction company, sign a contract with it, provide the bank with an estimate of expenses. Some banks cooperate not with all construction companies, but only with certain (verified) ones.

Depending on the conditions, a loan for repairs can be issued on the security of an apartment or without it. In the latter case, the percentage will be higher, but still lower than with a non-collateral consumer loan. In case of registration of the pledge, additional expenses will be required to assess the real estate, insurance of your life, notary services.

Before contacting the bank, analyze which loan option will be most beneficial for you. If you bought a house in a new building, and before settling on live in a rented apartment, then, of course, it is worth resorting to the services of the bank. If you have where to live, while you are transforming, you can do without credit.

Do not rush, consider whether it is worth getting into debt. And if you can not do without a loan, take it on the most acceptable terms. Go around a few banks and find out their terms, as they can vary significantly. Before entering into a loan agreement (for repairs), read in no hurry with all the points and all the additional fees that you will have to pay, except for the main debt (service fee, loan issue, early repayment). Some banks do not charge commissions. So you can conclude the most profitable transaction for yourself.