The issue of repair is relevant for many. It may occur when buying a new apartment or if you want to improve your current living conditions. But after the interested person familiarizes himself with the prices of materials and repair work, another question arises: where to get the money? And the solution is often lending in banking organizations. Today we will tell you how to get a loan for the repair of an apartment, what conditions are offered by banks and what are the types of such loans.
Define goals and opportunities
As with any loan processing, in order to find the most advantageous offer that is appropriate in a particular case, you need to decide on the objectives of lending. First you need to estimate the amount that will be needed to repair the apartment. Then decide how it is possible to repair the property: it will be self-repair or appeal to a construction company that will perform the turnkey work.
It is also worth considering that with a significant amount of over 500,000 rudders, you may need to pledge real estate or secure a deal with guarantors. Evaluate your financial capacity for the payment of monthly payments, the ability to provide a down payment, as well as understand what the term of the contract will be acceptable. Let us turn to possible solutions for loans to repair the apartment.
This is a type of contract when a bank issues money without specifying how the client plans to dispose of them. It, including, can be considered as a consumer loan for repairs. The borrower receives the money, independently disposes of them to purchase material or pay for repairs. A banking organization sets conditions on a payment schedule, and the client only needs to deposit money in time to the account, avoiding overdue debts.
Cash loans are always characterized by higher interest rates. There are restrictions on the amount of credit, no more than 1,500,000 rubles, and the terms – they do not exceed 5 years. The positive side of the issue is the fact that such a contract does not require additional information, collateral or guarantors of the transaction.
It is enough to contact the bank office or fill out an application through the website and provide proof of identity. We want to note that the less the bank receives information about the borrower, the higher the interest rate will be and the less favorable conditions for the client.
To apply for a non-purpose housing renovation loan, we recommend preparing the following set of documents:
- an application for a loan, which is provided by the bank;
- certificate of income;
- a copy of the workbook with signatures and seals from the employer.
A bank company may request an additional set of documents, but, as a rule, this is sufficient. A common cause of failure is a corrupt credit history. You can find out your story by contacting the credit bureau.
Non-earmarked loans – this is one of the most common types of lending. Such a proposal is available in any bank. Consider several current options at the moment.
In ABC banking, you will receive a loan for the repair of an apartment in the amount of not more than 3,000,000 rubles. The maximum contract period is up to 5 years, and the current interest rate starts at 12.9%. The application is made through the site or personal account, but you can go to the office of the banking organization.
For consideration and decision making, the bank will need 2 working days. After that, you can come and collect money on hand or arrange a transaction to transfer funds to an account in any commercial bank, as a rule, a debit card is attached to the account.
The advantage is enjoyed by those who have a salary project in ABC banking. For them, the rates will be lower by at least 1%. The maximum contract rate is 19.9%. For financing no collateral or guarantors are needed.
24/7 Banking offers to apply for a non-earmarked loan for home renovation using two available programs that directly depend on the amount of funding. Up to 400,000 rubles interest rate ranges from 16 to 22%. If the amount is required more, the bank can issue it at 15-15.5%. The credit limit is 5 million rubles.
An agreement is drawn up on standard terms with the provision of a full package of documents, including income certificates. Clients with a salary card can enjoy interest rate discounts. The bank does not charge fees for the issuance of funds, and the money can be withdrawn already after 2 working days from the date of filing the application.
The second option for obtaining funds for repair is to issue a target loan for the repair of an apartment. The essence of such a contract is close to lending for goods in stores. The bank transfers the money on the basis of the client’s application, the borrower receives the goods, in this case the repair, and undertakes to return the money within the deadlines set by the banking organization. The seller, who received funding, provides the necessary services.
But if everything is simple with a regular consumer loan or car loan, here it is necessary to estimate the amount of the transaction. To do this, you first need to contact the construction company and clarify with them the possibility of lending by signing preliminary documents.
The organization should make an estimate for the work, in which the total amount that the borrower will take on credit will be indicated. Then with the documents from the company to contact the bank for processing the transaction.
The bank organization will request a standard package of documents for the loan and provide an answer within 2-3 business days. After this period the loan can be signed, and the construction company will begin to carry out repairs according to the agreed conditions.
The risks of such a transaction are that the borrower assumes all responsibility for the loan obligations, and the quality of the work performed does not affect the credit in any way. The client will have to settle all disputable issues with the construction company and, as a last resort, in court.
This banking organization is ready to provide a loan of up to 5 million rubles. With a rate of 15% per annum. The terms of the contract do not exceed 5 years. The money is handed out to the client, who will have to keep all checks for payment for goods and services. During lending, a banking organization may request documentation to confirm the intended use of the loan.
If the client fails to prove that all the money has been spent for the intended purpose, then he will be fined. Also, an unconfirmed amount will need to be returned to the bank.
And the last option is a mortgage loan for repairs. This is not a mortgage in the classical sense, but a consumer loan secured by existing real estate. Such a contract is used to increase the amount of the transaction or if the bank refuses to lend without collateral.
The essence of the contract is that the bank issues money for any purpose, and the borrower provides the property as a guarantee that it will return the loan amount. If the debt is not returned, the banking company sells the collateral in favor of debt repayment.
According to the law, it is not possible to secure a transaction if the client has only one apartment. Since the bank will not be able to sell it, the borrower will simply have nowhere to live. Therefore, as a deposit take an additional apartment, land, house, garage.
Issued no more than 50-70% of the value of the property. Evaluation will have to be carried out at their own expense. In addition to standard documents, you will need:
- cadastral passport;
- certificate of EGRP;
- contract of sale;
- registration certificate;
- confirmation of the consent of the spouse;
- appraisal report.
Credit for the repair of an apartment in ABC banking can be issued at 12% per annum. The amount of the banking organization will provide up to 10 million rubles. And the maximum period is 20 years. But this does not mean that in this way you can get all 10 million. The bank is ready to allocate money in the amount of 60% of the proposed collateral.
In addition, if you do not have a salary card, then it is worth adding 0.5%, and without a life and health insurance contract another 1%. Thus, the interest rate can reach 13.5% per annum. The borrower must reside in the territory of the Russian Federation, and the property is located within 100 km from the settlement and in a region where there is a representative office of the bank.