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Should You Take Out A Loan To Furnish Your House In 2022?

Owning a house is almost like having your child. It is a responsibility of a lifetime that needs constant nurturing. Once you own a house, recurrent expenses of maintenance, renovation, painting and furnishing become part of the package.

A new house needs furnishing to transform into a home. Even an old house needs to be furnished from time to time for overhauling the old fixtures.

More often than not, you may find yourself in a position where you need additional funds to furnish your house. All leading financial institutions offer Personal Loan schemes called house renovation loans, which may provide you with the fund to fulfill your wish.

Should You Take Out A Loan To Furnish Your House In 2022?

There are pros and cons of borrowing money for furnishing your home. If you are looking for additional funds for this purpose, and go for Personal Loan, it is better to research the Personal Loan interest rates that are on offer. You can check the monthly installments you would need to pay by accessing the Personal Loan EMI calculator available on the websites of lending institutions.

Pros of Borrowing:

It is always wiser to opt for a Personal Loan for furnishing your house than spending on your credit card. The interest rates are lower in case of a personal loan than credit cards. Also, there is a scope of falling into a debt trap if you use credit cards through high-interest revolving credit. Some of the other advantages of opting for a personal loan are:

  • Personal loans are unsecured loans. Hence, the funds can be used for any purpose of your choice. You may also plan lavish furnishing as large amounts are also available on loan for house furnishing.
  • The loan approval process and documentation for personal loans are simple and the disbursement is fast.
  • The above feature is beneficial if you need to furnish your house at a short notice.
  • You have the option of choosing the tenor most suited to your budget. The personal loan repayment period stretches up to 60 months for salaried individuals, thereby keeping the installments within manageable limits.
  • You may also opt for some tailor-made loan schemes. As per the flexi norms, you pay interest only on the amount utilized. Prudent use of the borrowed fund will keep your loan burden under check.

Cons of Borrowing:

On the other hand, it is always advisable to avoid taking out a loan if you can manage without it. You must carefully evaluate the necessity of purchasing the materials for which you are planning to take the loan. You should remember that a piece of furnishing will cost more if you take on a loan, as the interest component on repayment needs to be factored in.

As evident from the discussions above, opting for a Personal Loan for house furnishing may not be the best option. At the same time, it is not a bad idea either as it might be a necessary purchase.

We’ve been battling an unprecedented crisis for the past  two years. Loss of income, uncertainty of life have become indelible components of our lives. If you plan to furnish your house in 2022, you need to ask yourself whether you are in the critical need of doing so. If yes, please reign in your wish and go for the necessity rather than exuberance.

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