There are offers specifically for apartment renovation, but may not be available for each applicant. Therefore, we look at the possibility of using a Personal Payday loan for the reconstruction of the apartment.
Reconstruction of the apartment can be up to date because we have not painted our apartment long ago or we would like to replace the old bathtub with a modern shower. The second reason may be to renovate an apartment if we have just bought an apartment, but financing the reconstruction from a mortgage loan is not possible. Property prices are so high that many of us can’t afford to buy a new apartment or house. They are forced to buy used, older flats and realize themselves by themselves.
When it comes to overall refurbishment or minor adjustments, a Personal Payday loan can be a solution for everyone. If we look at loan comparison pages, such as the Cratchit family page, we see that financial institutions offer loans of up to EUR 50,000. Such a sum is enough for demanding reconstruction.
What can we finance work for in addition to a loan?
In addition to the Personal Payday loan, we have many options. Mortgage loans are not used to finance the reconstruction of an apartment.
Building savings can be a preferred solution. This form of financing is also beneficial because we also use the amount of the state premium – and do not pay interest. Unfortunately, there is one big problem with this form, if we do not think about reconstruction in advance, we will not have money from building savings.
Therefore, it is very important to stress that planning also plays a major role in this area of our lives.
So a Personal Payday loan can be the most appropriate solution. At present, interest rates have been reduced to such an extent that it may be worth returning to borrowing and not waiting for reconstruction until the necessary amount is saved.
What conditions need to be met to approve us of a Personal Payday loan?
The Personal Payday loan is offered not only by banks, but also by non-bank companies, the so-called non-bankers. They are financial institutions that have been authorized by the National Bank of Slovakia to provide loans and are therefore entitled to pursue this activity.
The difference between these two financial institutions is that banks are usually stricter. Therefore, those who have lower incomes or have had difficulties with repayment in the past or have found themselves in a list of debtors with a negative record will not approve the loan request.
For them there are non-banknotes. Mostly they offer a loan to those whose banks have refused. The risk of default is reflected in the loan price. Their interest rates will be higher.
Is it worth to choose a loan with much higher interest?
Everyone has to consider whether it is worth financing a reconstruction from a high-interest loan. For example, if we borrow € 6,000 for 5 years with an interest rate of 18.93% pa, we will pay up to € 9,324, so more than 55% of the original amount. If we get the same amount more favorably at another provider, at a rate of 7.9% pa, we pay a total of EUR 7,755.60, the increase is almost 30%. The difference is huge.
We can agree that paying for a reconstruction of 55% more is not worth it. But is it worth paying a 30 percent increase? Let everyone answer himself.
At the end
Whether we want to restore a bathroom or reconstruct a just purchased apartment, it will certainly cost us some money. As we have seen in the example in the previous paragraph, the terms of the loan greatly affect how much the reconstruction will cost us. If we do not expect an increase in our monthly income, we can say peacefully that the total cost of the loan will be the amount of work that will cost us. We have to realize that the calculated increase is the amount we would have paid extra if we had bought the necessary things now. There is a possibility, loans offer us. Whether it pays off – everyone chooses himself.
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