Consolidated loan for home renovation. In a bank or non-banking?

28 Feb


Renovating a home is always a considerable expense, especially when we talk about general renovation. When you are also waiting for renovation, but you do not have enough savings, the consolidated loan is the solution. Where is it worth asking for?

Renovation can mean several hundred zlotys spent on new paints for walls, but also tens of thousands when we want to carry out more in-depth work, for example with the replacement of installations. Therefore, before we start shopping, we should calculate how much we will need the money.

The cost of renovation – how not to overpay?

The costs of renovation are varied. They depend not only on its scope, but also on selected materials, contractors of works. The cheapest will come when we take care of everything ourselves. When it comes to painting walls or laying panels, we do not need special skills, and we can find advice on how to do these works on the internet.

In turn, when we want to use the services of repair teams, we will have to pay more. Labor often exceeds the cost of purchasing materials, so it is worth getting acquainted with various offers to make sure that we have chosen professionals, but without overpaying.

We can also save on materials. When we have a trusted team, we can ask for the purchase of materials, and then we will pay a lower VAT with their assembly. However, when we first use the services of a given team for the first time, it is better to buy materials yourself. Then we control their number, and it is not uncommon that not very honest companies buy more materials at the expense of the customer. The unused part is used in other renovations.

How to finance renovation?

As we mentioned at the outset, when we do not want to wait longer with renovation, it is best to opt for a consolidated loan. We can borrow money from family or friends, but most Poles prefer bank and non-bank consolidated loans.

Where it is worth taking a consolidated loan depends mainly on the renovation costs. In consolidated loan companies operating non-banking we will usually borrow sums up to PLN 10,000 as part of installment consolidated loans and up to PLN 3,000 for payday consolidated loans , which we give back in 30 days. If we do not want to have difficulty in repaying the debt, a consolidated loan will be a better choice, because then we pay low, convenient for the household budget installments.

On the other hand, we can take even higher sums in consolidated loan banks, but we must remember that banks carefully examine the creditworthiness of their clients, so if we are not in a good financial situation, we may not get a consolidated loan in the requested amount.

It is worth taking a slightly larger consolidated loan

When we hesitate, what sum of consolidated loans to take out, it is worth taking the slightly higher one. It is difficult to predict the renovation costs in advance because additional expenses may arise during the renovation. Therefore, it is better to have extra money at hand to be able to use them in such situations.

Usually, you only need 5-10% more than you expected, for example, if you want to borrow 5,000 zlotys, take 5,500 zlotys.

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