Use a two-wheeler loan for home renovation: Here is how you can

The conventional purpose of applying for a two-wheeler loan is to finance motorcycles or scooters. However, with strategic planning, you can also manage your expenses for home renovation through these loans.

Renovating your home can breathe new life into your living space. However, these makeovers often come with significant expenses. In case you need financial assistance for home renovation, obtaining a loan would be the most logical decision. Reputed banks and NBFCs offer these loans at reasonable rates of interest. 

Do you know that a two-wheeler loan can come to your rescue if you are financially stressed while renovating your home? Well, you might be thinking that you can these loans primarily help in financing motorcycles. However, a two-wheeler loan can also help you manage your finances in other ways.

Let’s delve into this article and understand the concept of home improvement financing and how you can use a two-wheeler loan for similar purposes.

What is a loan for home renovation? 

A loan for home renovation is a type of loan designed specifically to provide you with financial assistance to improve or renovate your home. In this form of borrowing, homeowners can fund their renovation projects without depleting their savings or interrupting their regular flow of cash.

Banks and NBFCs generally offer home improvement financing options at low interest rates. With this loan, you can cover various renovation expenses such as remodeling your kitchens or bathrooms, repairing roofs or replacing them, adding room extensions, or upgrading your plumbing or electrical systems. In a nutshell, home improvement financing goes a long way in enhancing the overall functionality and aesthetics of your home.

How can you use a two-wheeler loan to renovate your home?

Traditionally, individuals opt for home renovation loans to finance their improvements. However, the interest rates on these loans can be marginally higher compared to two-wheeler loans. 

Now, suppose you are planning to purchase a two-wheeler around the same time as you are planning a home renovation. Here’s how you can use your two-wheeler loan for home renovation.

Under ordinary conditions, you might have used your savings to purchase your motorcycle. This would require you to take a home renovation loan at a higher interest rate from a bank of NBFC.Why not think the other way round?

Apply for a two-wheeler loan at a lower interest rate to finance your motorcycle. This implies that you would have your savings at your disposal. Use a part of this money for renovating your home. This way, you need not go for a high-interest home renovation loan. On the other hand, you can also repay your two-wheeler loan over the next few years.

Comparing the cost of home improvement financing and a two-wheeler loan, the latter proves to be cheaper.

Benefits of obtaining a two-wheeler loan

You might be wondering why it’s logical to apply for a two-wheeler loan and not a home improvement loan. Let’s have a look at the prime benefits of obtaining a motorcycle loan.

  1.Quick approval

The easy processing and fast approval of two-wheeler loans make them the first choice for borrowers. When you apply for a motorcycle loan and ease up your home renovation, you can benefit from the hassle-free loan application process. This way, you can get started on your home renovation project sooner.

  2.Competitive interest rates

Compared to a loan for home renovation, a two-wheeler loan comes with lower rates of interest. This makes it a convenient option for financing your project. 

The interest rate on two-wheelers is among the lowest. In case you decide to take a loan for home renovation, a personal loan, or a credit card loan, you would end up paying more interest. On the other hand, a motorcycle loan can help you make significant savings on your interest.

  3.Flexible loan amount

The loan amount that you can qualify for through a two-wheeler loan depends on different factors. These include your income, credit score, and the lender’s policies. Thanks to the flexibility, obtaining the necessary funds to finance your purchase becomes easy.

  4.Flexible repayment tenure

Banks and NBFCs provide borrowers with an option to choose a suitable repayment tenure. Based on your current financial condition, you can choose from one to five years. If you are financially well-off, it’s wise to close your loan in two to three years. However, if you are not in a position to repay a significantly high amount each month, simply choose a longer tenure. Although you would end up paying more on interest, the monthly EMI would be lower.

  5.No collateral required

Two-wheeler loans are unsecured in most of the cases. This implies that you don’t need any collateral or security against the loan. So, you need not pledge any asset such as your property or any other valuable against the loan. This helps in minimizing the associated risks. On the other hand, applying for home improvement financing may require you to provide collateral.

End Note

Obtaining a two-wheeler loan for home renovation brings you several advantages. The competitive interest rates, quick and convenient loan processing, and no collateral requirements are some of the best perks of these loans. Now that you know how you can be strategic with using your funds, managing your home renovation through a two-wheeler loan wouldn’t be an issue.

Careful financial planning and responsible financial management can help you use your motorcycle loan as a valuable tool to ease up your finances. Reach out to one of the reputed banks or NBFCs and apply for a two-wheeler loan.