If you want to renovate your apartment or house, you do not always have cash immediately. Depending on how extensive wallpapering and painting or laying new floors, such a general overhaul of the house and apartment can be quite expensive. A loan for a renovation can be obtained from a bank or privately under certain conditions.
Personal loan for renovation
If you want it to be quick, you can get the money you need for a renovation within the family or from a friend. Such personal loans are often free of interest and a Credit Bureau entry is also pleasantly omitted. The repayment can be regulated individually, but should also be made to relatives and acquaintances regularly and reliably.
If business premises or offices are to be renovated, you can also try to obtain a personal loan via a corresponding platform on the Internet. There private individuals lend money against interest to other private individuals who need the loan for certain projects and business ideas. This can also be a loan for the renovation of a café, a restaurant or other business premises. In such a case, it is important to plausibly explain the reasons for the need for renovation.
Credit through the bank or building society
In the case of smaller sums, a loan for a renovation can be obtained via the existing overdraft facility in the checking account. The advantage is that you have the appropriate amount, provided that your creditworthiness is available, and you can buy the materials for the renovation. However, an installment loan is cheaper in terms of interest, which is generally easy to obtain given creditworthiness and good Credit Bureau information, as well as regular income or payments to a business account.
The borrower should not forget, however, that every bank loan in Germany results in a Credit Bureau entry. A installment loan can also be obtained from direct banks on the Internet. The right contacts are also building societies, which grant low-interest special renovation loans.
Swiss credit or funding as alternatives
If the renovation costs do not exceed USD 3,500 or if you can add something out of your own pocket, a Swiss loan is an alternative as a loan for a renovation. The advantage is that banks in Switzerland do not query the German Credit Bureau and do not forward any credit data to the Credit Bureau.
Interest rates are quite high, however, and the bank in Switzerland also requires proof of regular income above the statutory garnishment limit. Unemployed people and start-ups who want to finance a renovation have no chance here, the upper age limit is 58 years at best, often only 55 years.
Anyone who owns a house or apartment can receive funding from the Cream bank in Frankfurt, which promotes investments in environmental protection and innovations on favorable terms. This is the case, for example, if the renovation is accompanied by an energy-saving renovation or the installation of an old-style bathtub creates new living space for the elderly.
There is a low-interest loan for a renovation through Cream bank for private individuals, start-ups and companies, and it is always worth asking. Forms can be filled out and sent online. You can also discuss with your bank advisor what type of public funding of home renovation might be considered.