A small loan for renovation is sufficient for most renovation projects. The overdraft facility for the renovation costs is temptingly convenient.
With our loan advisor on small loans for home renovations, we would like to draw your attention to low-interest alternatives. – Because, even with small loan amounts, short-term financing is not allowed. Installment loan is always significantly cheaper than the overdraft facility.
Interested parties with negative Credit bureau learn whether a loan without Credit bureau could be worthwhile for the renovation.
Small loan for renovation – public loans?
Renovation loans are in demand. The Federal Government makes a lot of advertising for creating age-appropriate living space. KfW currently grants a loan of 0.75 percent effective interest and even a subsidy. (Reconstruction Credit Institute). But does it also grant a small loan for the renovation of the handyman?
A closer look at the programs reveals that the federal government has no heart for the popular DIY of the home improvement scene. Public grants are only granted if companies undertake the renovation and renovation.
Do-it-yourselfers who want to save a lot of money for the craftsman do not have access to public funding. Still, it doesn’t pay off to explode to expand renovation costs just to get a publicly funded loan.
Do-it-yourself – save money and lend a hand
A small loan for the renovation finances the usual financial needs of a home renovation. Primarily, colors and fillers are required for living rooms up to a maximum of decorative plaster. Renovation work does not penetrate deeper into the building structure. Renovations are primarily optical corrections. They are among the tasks of the living space user. For tenants, the rental agreement even specifies the intervals at which the rooms are to be prepared.
Renovations are the optimal field of activity for do-it-yourselfers. Depending on which room is to be renovated, some tools are added to the material. Overall, the focus of the costs in DIY is on the cost of materials. The work invested is your own contribution and does not have to be paid. With which the financing sum should not overwhelm an ordinary household budget.
The mistake that many make when renovating and throwing a lot of money out of the window is the type of financing. Your “self-approved” small loan for the renovation is the overdraft facility. The checking account accepts the overdraft without complaint. In the background, the house bank even rubs its hands. It collects horrendous overdraft interest for this renovation loan. The usual overdraft facility in Germany costs up to eight times the interest rate on an installment loan.
Credit volume and availability of money – small loan
There is no fixed definition of the volume of a small loan. Depending on the loan provider, this mostly means credit volumes between USD 1,000 and USD 3,000. But also loans up to 5,000 USD can still be rated as small loans. Small loans are often referred to as instant loans. The simple online loan application is followed by an almost completely automated approval process.
Only income and the household bill are checked. A computer program compares the applicant’s personal score with the default setting and the loan decision is made in real time. ImprovedLend is a modern small loan for renovation from the Internet. Thanks to “Videoident”, it can be received in the recipient’s account within 48 hours of applying for a loan.
Interest rate level for small loans – how big is the savings volume?
If you apply for a good loan comparison, nobody has to be afraid of the financing costs. Instead of 14 -17 percent for the overdraft facility, consumers only pay between 2 and 4 percent effective interest on the installment loan. As of April 2016, the loan comparison shows 2.69 percent APR for USD 5,000 small loan with a term of 36 months.
The chosen credit example costs a total of $ 207.48 financing costs. Monthly payments of 144.65 USD would have to be made. In comparison, the overdraft facility as a small loan for renovation is extremely expensive. Assuming a realistic 16 percent and repaid in 36 months, the financing would cost USD 1234.12. The household budget would have to spend USD 173.17 a month to balance the current account after 36 months.
The calculation example proves that the overdraft facility for financing the renovation is an expensive pleasure. The installment loan saves well over 1,000 USD compared to overdrafting.
Loan without Credit bureau – small loan for the renovation costs?
Probably the best-known small loan with a negative Credit bureau is the foreign loan without Credit bureau. The small loan is also known as a Swiss loan or housewife loan. Small foreign credit offers a credit opportunity to people who fall through the rush of modern credit checks. If a negative Credit bureau entry prevents regular credit offers from being accepted, Credit bureau-free financing can be the solution to the credit problem.
Nevertheless, no applicant for small loans without Credit bureau should have too high hopes for the renovation. The credit check is done by hand. It is tough. Practically without exception, only people whose only problem is the negative Credit bureau qualify for the Credit bureau-free small loan for renovation. The interest rate level does not differ significantly from the overdraft facility. As of April 2016, the annual percentage rate for a 3,500 USD net loan would be 11.15 percent.