Refurbishment loans, fully known as home improvement loans, are a mortgage-free loan provided by banks and consumer finance companies. This loan is designed for the renovation of homes, so let's find out how to apply for it。

How does the renovation loan go

First of all, you need to make a clear application, fill out the application form for a loan for renovation, and at the same time provide some information, such as valid identity documents, your own proof of income, and the renovation contract signed between the renovation unit, as well as other information that must be requested by the bank。

The bank will then verify the information you have provided upon your application. Once approved, you will sign a loan contract with the bank. If you apply for mortgage, you also need to sign a guarantee contract and register the corresponding mortgage。

And then the bank goes down, and it's a very simple and fast process. Some banks are going to put the money directly into the accounts of the refurbishing company, and you just have to arrange for the renovation company to do it, and others are going to put the money on your bank card, but the money is only going to have to be painted by the designated company。

There are two main types of renovation loans: personal consumption loans and mortgage loans. Individual consumer loans are the most common type, provided mainly by banks or other financial institutions, and you can choose the amount of the loan and the period of repayment according to your needs. Such loans have lower interest rates and longer repayment periods and are suitable for small- and medium-scale renovation projects. The mortgage loan, on the other hand, requires the use of your house as a mortgage, which you can only choose if you own and have the added value of the house, although the risk is also relatively high。