Decoration loans, also known as home improvement loans, refer to personal credit loans launched by banks or consumer finance companies for the purpose of home decoration, that is, unsecured credit loans. You can check some loan information on Easy Information, which integrates the resources of the national loan industry, including bank loan products and company products, with complete information.

Second, what is a decoration loan?

Home improvement loan is also called personal credit loan for the purpose of family house decoration, that is, unsecured credit loan. The personal housing renovation loan issued by the bank is RMB yuan, which does not exceed 50% of the total cost of the renovation project. But the loan channels you choose are different, and the amount you can apply for is different.

Unsecured credit decoration is generally 5-8 times of monthly income, unsecured and unsecured, but it has high requirements for borrowers' credit information. Banks pay attention to the details of the applicant's job nature, industry, income status and other professionals, VIP customers, senior management personnel of the company.

Mortgage decoration loan is also a decoration loan applied for by real estate mortgage. There are many banks to carry out this business, and consumers have more choices. The general loan amount shall not exceed 70% of the appraised value of the mortgaged real estate. Where collateral is used as a guarantee, the maximum loan amount shall not exceed 90% of the value of the pledge right certificate, and it shall be more than 600,000 yuan according to the credit rating of the borrower or guarantor.

In order to better satisfy consumers' business of home improvement by stages, some banks aim at people who live for the crowd, have no money to decorate and have good credit records. The loan amount that can be handled is generally 6.5438+10,000-200,000, with the highest installment for individual products.

Application conditions: having local permanent residence and legal and valid identity certificate; Have a legal occupation and stable income, have the ability to repay when due, and can provide relevant assets certificates, bank statements, tax bills and other certificates. For newly purchased houses, information such as house sales contracts and purchase invoices shall be provided (or if the original houses are renovated again, proof of house ownership shall be provided).

When a lender applies for a decoration loan, it generally needs to provide the following materials to the bank: proof of residence, proof of identity and fixed residence; Company certificate, stable working capital bill for six consecutive months or more), and proof of your repayment ability; Proof of deposit for real estate mortgage (required for mortgage loan);

Bank deposit statements, water and electricity tax bills and other certificates to prove their credit quality; Materials such as the Purchase of Decoration Materials Contract signed with the decorator, which prove the purpose of the loan; A copy of the business license and qualification certificate of the decoration enterprise, which proves whether the partner is within the prescribed scope; Other conditions required by banks or financial institutions.

3. What's the difference between decoration loan and mortgage loan?

A: The difference is that these two loan methods are based solely on interest rates, which is definitely more cost-effective for decoration loans. But when we borrow money, we should not only look at the interest rate, but also consider the amount, repayment method, length of life, whether to repay in advance, whether to pay liquidated damages in advance and so on.

I. Quotas

The amount of a single renovation loan is generally between 300,000 and 500,000.

Mortgage loans can usually achieve a 30% discount on collateral, which is beyond the proportion of decoration loans (taking housing as an example)

Second, the repayment method

At present, the repayment method of decoration loan is mainly equal principal and interest.

Mortgage loan includes equal principal and interest, interest first and principal later (if borrowed, it will be repaid).

In fact, the repayment method occupies a great weight in the choice. Interest before capital has a huge advantage in the early stage, that is, there is no need to repay the principal, which relieves the huge early repayment pressure for enterprises and long-term investors. Moreover, the matching principal and interest are not bad for those who have relatively abundant funds and make short-term investments. At least they don't have to wait, but they will repay the principal in one lump sum, and each installment will be replaced when it is slightly due. (Not to mention, 70% of the customers I met want to be able to use it to repay their loans, and how much interest will be generated with it, and no interest will be generated, similar to credit cards).

Third, the length of life.

Decoration loan is a short-term mortgage loan, usually 1-5 years. The longest mortgage period is 30 years. In contrast, the renovation loan depends on being smashed into slag, and the issue of interest has to be considered. Five years only need five years of interest, 30 years and 30 years. Of course, if you repay the loan in advance, you won't care about the interest afterwards, but I believe that if you choose a 30-year term from the beginning, it may be difficult for them to pay off the loan in advance for at least the next five years.

Four. Repayment in advance and whether to pay liquidated damages.

If you repay the money released by the bank in advance, you don't need to repay the interest of the remaining installments, and most of them don't need to pay liquidated damages, but there are also a few mortgage loans that need liquidated damages, and the loan officer will make it clear to you when handling them.

In a word, when I make a loan, I will consider the above points comprehensively and choose not to make a blind choice according to my actual situation. When you don't know how to choose, you can also choose a formal loan intermediary for comparison. It doesn't hurt to shop around!

We go all out to help you solve all your financial problems.

4. What is a decoration loan?

Decoration loan refers to the personal credit loan launched by banks or consumer finance companies for the purpose of family housing decoration. The details are as follows: Decoration loan, also known as home improvement loan, is a personal credit loan launched by banks or consumer finance companies to help realize the purpose of home decoration, which can be understood as unsecured credit loan. When an individual applies for a decoration loan, the bank or consumer finance company will give the individual no more than RMB 6,543,800+0.5 million and no more than RMB 50% of the total cost of the decoration project according to relevant regulations. At present, there are two ways to apply for decoration loans, personal credit loans and personal consumption loans. There is also a form of credit card installment, that is, credit card home improvement installment. Individuals can choose the way of decoration loan according to the actual situation. : 1. There are two kinds of home improvement loans and one credit card installment form to apply for, as follows: 1. Apply for personal credit loan decoration; 2. Personal consumption loan decoration loan. Consumer loans here refer to mortgage loans with certificates, that is, consumer loans with real estate as collateral. ; 3. credit card home improvement staging; 4. In addition to traditional bank loans, loans from consumer finance companies are also one of the options. Second, the application conditions: 1. Having a local permanent residence and a legal and valid identity certificate; 2. Have a proper occupation and stable income, and have the ability to repay the principal and interest of the loan at maturity. 3. The borrower can provide relevant asset certificates, bank statements, tax bill certificates, etc. 4. For newly purchased houses, materials such as house sales contracts and purchase invoices shall be provided (or materials such as house ownership certificates shall be provided if the original houses are renovated again); 5. Other conditions stipulated by the Cooperation Organization. Three. Application materials When applying for a decoration loan, the lender generally needs to provide the following materials to the bank: 1, a valid ID card, a certificate of permanent residence issued by the neighborhood Committee, and a certificate of identity and fixed residence; 2. Proof of professional and personal income issued by the unit, proof of stable work for six consecutive months or more (or providing monthly salary bills in recent months) to prove its repayment ability; 3. Real estate certificate of real estate mortgage (required for mortgage loan); 4. Bank deposit statement, water and electricity tax bill and other certificates. To prove their credit quality; 5. The decoration project contract signed with the decoration enterprise, the purchase order of decoration materials and other materials that prove the purpose of the loan; 6. A copy of the business license and qualification certificate of the decoration enterprise, which proves whether the partner is within the prescribed scope; 7. Other conditions required by banks or financial institutions.