Finance your kitchen remodelling with a Personal Loan

A kitchen is the centrepiece of an Indian household. This is the place where you cook delicious food for your family, store all your grains and spices, and install appliances like microwaves, juicers, and chimneys.

It is every homeowner’s dream to have a beautiful and spacious kitchen with ample light and ventilation. Therefore, if you want to renovate your kitchen according to the latest styles and facilities available, this article is for you.

Here comes the tricky part. Like most things in the modern world, kitchen remodelling does not come cheap. If you want to renovate your kitchen, you can easily expect an expenditure between Rs. 1 lakh and Rs. 5 lakh, depending on the range of work.

Additional Read: Remodel Your Home Bathroom

Before you think of dipping into your savings, we can tell you that is a far better way of financing your kitchen renovation. The ideal way to go about it is to opt for a personal loan for kitchen remodelling. Here are some easy steps for availing yourself of a personal loan for all your kitchen renovation needs.

How much do you want to spend on kitchen remodelling?

Before you go for a personal loan for kitchen remodelling, you need to determine what type of changes/ improvements you are looking for. Each addition to your kitchen will mean an addition to your expenses. The first thing to do if you want to renovate your kitchen is to break down the total cost.

1. Kitchen countertops

These are probably the most expensive items in your kitchen remodelling plan. Changing the way your kitchen countertops are placed can potentially change the whole layout of the kitchen. This is because countertops determine the relative position of all the other shelves and appliances in the kitchen.

Choosing granite countertops will also add to your kitchen renovation cost. Although granite countertops look great and last long, they are pretty expensive. Installing them may set you back by Rs. 20,000 to Rs. 50,000 depending on the quality of the stone you choose.

2. Placing equipment the right way

Are you dissatisfied with where your OTG oven is kept? Or maybe you want to shift the air fryer to another part of the kitchen? Changing the spots of kitchen appliances means you may have to get new power points and shelves installed. Although this is not exorbitant, you will still have to engage the services of a professional, which will add to your kitchen remodelling expenses.

3. Getting the correct modular elements

If you are not satisfied with the colour scheme of your kitchen walls and cabinets, you can redo both conveniently by taking a personal loan for kitchen remodelling. Modular elements these days are available in a wide range of sizes, finishes, and colours. A repaint job with new matching modular shelves is just what you need if you are bored with how your kitchen looks. This is an excellent way of changing the whole look and feel of your kitchen. Be prepared to factor this cost into your personal loan application if you want to renovate your kitchen.

Additional Read: How to Manage Finances for Your Home Renovation?

How to apply for a personal loan for kitchen remodelling

Now that you have a fair idea about the cost of your kitchen renovation, you can proceed to apply for a personal loan for kitchen remodelling. Here are the things that you should keep in mind before availing yourself of a personal loan: 

• Eligibility criteria: You need to have a stable monthly income, either from a salary or a business, along with a minimum credit score of 685 or higher. However, financial institutions also provide loans to first-time borrowers with a steady income.
• Loan amount: The loan amount will depend entirely on your annual income, ultimately determining your ability to repay the loan. In most cases, you can avail yourself of a personal loan between Rs. 20,000 and Rs. 55 lakh, depending on your eligibility and repayment capability.
• Interest rates: Personal loan interest rates range from a minimum of 10% and can go up to as high as 31%. Financial institutions charge interest depending on the candidate’s credentials and repayment history. If you have a high CIBIL score, you will be in a good position to negotiate for a lower interest rate.