Serious repairs become a big test for everyone. A lot of people refuse to repair just because this event requires a large investment of money. It happens that a person starts a repair and makes it only as soon as there are available funds, as a result, it is delayed for many years. So that the repair does not bring a lot of trouble and went very quickly, you can take a loan, the funds from which will be enough to pay for construction materials and to pay for the work of a team of professional craftsmen.
Even if a person plans to develop a design on their own and plans to carry out all repairs on their own, they still can not avoid serious expenses. Every year, the number of people who take a bank loan for repairs becomes more and more. Today there are three ways that you can get the borrowed funds.
The first and easiest way
The simplest option that everyone can use is to get a non-targeted loan to meet personal consumer needs. To get a loan from a bank, you will need to collect a certain set of papers. These include; certificate of income in the form of a bank or 2NDFL form, passport, copy of labor. Each bank always reserves the right to request additional securities from a potential borrower. If the lender finds the requested amount to be large relative to the borrower’s income, they may ask for a guarantor.
The advantage of such a loan for repairs is that there is no need to report to the lender. Usually, this type of loan is suitable only if the amount of the loan amount is no more than 300 thousand. The maximum loan repayment period that you can expect when choosing this program is 5 years. When choosing a non-targeted consumer loan, you should remember that such offers are the riskiest for the lender, and therefore it will be quite expensive to pay for using bank money.
The second method with collateral
It also implies obtaining a consumer non-purpose loan from a bank, but only in this case, the borrower offers a financial institution a pledge in the form of a personal car or real estate. In this case, the borrower will have to pay additional costs in the form of collateral insurance and its assessment, but the loan amount may significantly increase, while the annual interest rate will be lower on the contrary.
The third method and the most profitable
This method is to get a targeted loan from the bank for repairs. It is suitable when a person is planning a large-scale renovation of a large apartment or a large country house. This type of loan is the most profitable, and modern banks are willing to accept such transactions. The disadvantage of it should be called the need to attract a specialized team that will make an estimate for repairs.
This estimate is an important document, as it must be attached to the loan application, along with the contract of cooperation with a certain company that is engaged in construction and repair work.