| Home improvement loans, a sub-type of personal | | | | gets the authority to sell the pledged asset to recover |
| loans, are meant for home expansion or enhancement | | | | his investment. And, the limitation is slow approval |
| works like new room, kitchen upgrades, bathroom | | | | process, i.e., the loan application is approved after |
| fittings, new furniture, wooden floors, garden | | | | time-consuming property evaluation along with other |
| landscaping, etc. Choose from the following sub-types | | | | credibility factors. |
| of home improvement loans: | | | | For small home improvement works, pledging collateral |
| - Secured home improvement loan, designed for | | | | does not seem practical. This is when an unsecured |
| homeowners and property owners, is popular for its | | | | home improvement loan comes into the picture. This |
| maximum benefits characteristics | | | | loan can be availed without offering collateral. The |
| - Unsecured home improvement loan, designed for | | | | advantages of opting for this sub-type are – no |
| tenants, home owners, property owners and people | | | | collateral (no deposit against the loan amount), less |
| living with their parents, like students, is popular for its | | | | paperwork (no red tape), quick service (fast loan |
| ‘no collateral’ feature | | | | processing) and no immediate risks in the event of |
| A secured home improvement loan, as the name | | | | repeated defaults or non-repayment. |
| suggests, can be availed by offering collateral against | | | | However, an unsecured home improvement loan too |
| the loan amount. The advantages of opting for this | | | | has certain limitations – limited amount, high APR, |
| sub-type are – quick attention, high credit limit, | | | | fixed payback terms, non-negotiable loan clauses – |
| competitive low APR, flexible payback terms and | | | | because in the absence of collateral, the stakes are |
| negotiable loan conditions. | | | | normally high for the lender. |
| However, a secured home improvement loan has one | | | | As both secured and unsecured home improvement |
| risk and one limitation. The risk is collateral seizure, i.e., in | | | | loans have pros and cons, planned approach is |
| case of repeated defaults or non-payment, the lender | | | | recommended. |