There are several ways for lenders to choose from when applying for a bank loan to buy a house, and house decoration loans are no exception. So what are the ways of bank house decoration loans?

1. Pure credit decoration loan: As the name suggests, no mortgage or guarantee is required, and only proof of identity, income, address and other materials are required. This type of loan is suitable for working people with stable income and good credit record. The advantage is that the optional amount is flexible, convenient and fast; the disadvantage is that the interest rate is higher than that of a mortgage loan, and the requirements for personal qualifications are high, so the amount is relatively low.

2. House mortgage renovation loan: Applicants are required to use the renovated house as a mortgage. Users need to provide ID cards, household registration books, real estate certificates and other documents, and use the house as a mortgage to get a renovation loan. Loan, up to 70% of the appraised value of the house. The advantage is that the interest rate is relatively low, but the disadvantage is that some banks do not accept houses that are already under mortgage as collateral to apply for mortgage loans.

3. Credit card installment payment: It is a new decoration loan model that has emerged in recent years. Many banks promote related credit card business. The bank pays the merchants a one-time payment for decoration consumption, and then allows users to pay in installments. The process of repaying money to the bank. This type of loan is mainly targeted at people who live in large and medium-sized cities, have just purchased a new house, are short of money for decoration, and have a good credit record. The amount is generally between 100,000 and 200,000. The advantage is that the entry threshold is low and no mortgage is required; the disadvantage is that the available decoration companies are limited and the loan amount is low.

What are the precautions for renovation loans?

1. Personal home renovation loans are loans issued by banks to borrowers for the renovation of their own homes. The housing decoration mentioned here refers to the engineering activities of using decoration materials to modify and process the housing. This means that the property must be yours.

2. Special requirements for housing decoration loans are: a housing decoration contract, decoration budget estimate and related information signed with a decoration enterprise approved by the relevant departments; some banks also require owners to have Less than 30% of the total decoration budget of own funds shall be invested in project construction before using the loan.

3. According to bank regulations, personal consumption loans generally do not allow cash withdrawals. The bank will transfer the money to the decoration company's account.

4. The loan term generally does not exceed 5 years.