If your ceiling has long been waiting for a much needed repair and your garden is unkempt, and your current financial status doesn't allow you to spend on these necessary things, a home improvement loan is the most valid choice. Many borrowers feel astounded at the idea of incurring debts for home repairs and improvements. But then, you can't really do without them. Everybody will like to live in a well-furnished house.

Uses of home improvement loans

Home improvement loans can be used to beautify, modify and improvise your most treasured possession - your home. Cited below are some of the improvements you can have in your home:

Adding new room(s)
Buying new furniture
Landscaping
Health and safety repairs
Electrical and Plumbing requirements
Getting the house whitewashed or painted

Secured and unsecured home improvement loans

These loans are actually a type of personal loan that can be secured as well as unsecured. Secured home improvement loans require you to pledge an asset like home as collateral to the lender. These loans attract low rate of interest and other benefits like choice in type of rate of interest and flexible repayment options. But, there is a risk associated with it in the form of security you are offering. If you fail to repay the loan, the lender may seize your asset.

Unsecured home improvement loans can be availed without pledging your home or any other asset as security. Since the risk factor involved for the lender is very high in this case, he compensates the same by charging a very high rate of interest. The APR can be comparatively low if the borrower has a good credit history and sound associations with past lenders.

The borrower should choose between secured and unsecured home owner loans by weighing the advantages and disadvantages of both the loan products. He should also keep in mind his financial conditions and the magnitude of the monetary requirements.

Credit By : gracy