If you do not have abundant savings or a real possibility of raising a significant amount of money in the short term to carry out this type of reform, it is best to apply for a personal loan. In this post we are going to show you what are the elements that you have to study when looking for a personal loan to reform your home that best suits your needs.
1. Look at the interest of the loan
In general, the interest for this type of loans is usually fixed and currently ranges between 4.95% and 7.75%. The average is currently around 6%. Some of these loans may base their interests on the Euribor and be variable, but it is less common. Interest is one of the factors that can tax the loan in the long run. Think that the real price you will pay to the bank will also include this expense when you are going to calculate the total price that you will have to pay to the bank.
2. Study the commissions
A loan may include opening and cancellation fees. Be sure to find out if the loan you want to request to reform your home includes any of these fees and what is its percentage. Not all entities apply them and those that do, usually set the price at 1%, although there are also certain banks that can charge between 2% and 2.25%.
3. Check if the loan you want to request includes links
Normally, loans of lower amounts do not include a link, such as the obligation to direct the payroll with the bank, to contract some type of insurance or to request a credit card. This requirement of linking by the bank is usually more common with the granting of mortgages. It is always good that you make sure that this link does not exist or, if there is one, that you try to use it for your benefit and negotiate with it. For example, many banks reduce the interest they receive in exchange for customer bonding.
4. How much money can you ask for?
Although banks today can finance less than € 6000, it is usual to be between € 15,000 and € 75,000. It is convenient that you have made a study of expenses before the loan application so that you know how much money you will need and ask for only one loan and not several.
Keep in mind that the longer you extend the duration of the loan, the greater the interest and the more expensive the product. Sometimes it is advisable to request a refund with somewhat higher rates each month to prevent interest from triggering the total to be returned.