In home decoration, it is inevitable that some people are short of money. In order to meet this demand, the way of decoration loan naturally appeared. Now many banks and financial institutions have launched decoration loan services, so is the decoration loan cost-effective? Generally speaking, the cost of decoration loan is relatively small, or relatively cost-effective. As long as it is approved or decoration funds, let's take a look at Ali's application method for decoration loan.

1, pure credit decoration loan

Pure credit decoration loan means that you don't need mortgage and guarantee, but only need identification, income proof, address proof and other materials. This kind of loan is suitable for workers with stable income and good credit record. This method is flexible, convenient and fast, but the interest rate is higher than that of mortgage loan, and it requires higher personal qualifications and the amount is relatively low.

2. Mortgage loan for house decoration

Mortgage decoration loan requires the applicant to use the renovated house as collateral, and the user needs to provide ID cards, household registration books, real estate licenses and other documents. With the house as collateral, the decoration loan can be obtained, up to 70% of the appraised house price. The interest rate of this decoration loan method is relatively low. However, some banks do not accept mortgaged houses as collateral to apply for mortgage loans.

3, finance company decoration loan

The decoration loans of general financial companies can provide customers with the required loan products through commercial banks and credit cards. The procedure is relatively simple, and there are many choices for decoration companies, but the cost is relatively high. You need to think carefully and choose the right product when dealing with it.

Step 4 pay by credit card

It is a new decoration loan model that has emerged in recent years. Many banks carry out related credit card business, and the bank pays the decoration consumption funds to the merchants in one lump sum, and then lets the users repay the money to the bank in installments. This kind of loan is mainly aimed at people who live in large and medium-sized cities, just bought a new house, are short of money for decoration and have a good credit record. The limit is generally 10 to 200,000. This kind of decoration loan method has low entry threshold and no need for mortgage; However, the choice of decoration companies is limited and the loan amount is low.

What are the application methods for decoration loans? Is the renovation loan cost-effective? That's all. I hope it helps you.