A house is a great investment for any person. It is therefore essential to ensure that it is well maintained and reflects his style and preference. However, it can get complicated and can cost a fortune. For this reason, it is recommended that you consider a loan. A work loan is a good option to take care of your home at any time without affecting your financial situation too much. But what are the works that this credit can finance ?
What is a work loan ?
This is usually a loan requested from a credit institution to finance work in their home. In other words, the borrower uses this money to pay for the work they want to do to improve the condition of their home. Thus, he can perform any action with confidence. The work loan is often granted in the form of a consumer credit, an assigned credit or a mortgage loan.
The choice between the three types of loans depends on the needs of the borrower as well as the budget he wishes to spend. To this end, the duration and the amount of the work loan vary according to the type of credit, so it is essential to calculate the amount of your work credit before contacting his bank. If the work is financed by a consumer credit, the amount of the loan must not exceed € 75,000, to be repaid over a maximum period of 10 years.
If the amount needed to finance the work is after € 75,000, it is recommended to opt for a mortgage, the repayment period of which is longer. The affected credit should be considered when the borrower knows exactly the type of project he wishes to carry out, or when he calls on a service provider to carry out the development. In this case, the credit is allocated to a single type of work, and the borrower must provide documents to justify each expense.
What types of work are eligible for a loan ?
A work loan allows you to finance any type of project, from development to decoration. It can be an essential action or simply a purchase of comfort. The types of work depend on what the borrower wants to do with the loan amount, but the list can be long and the borrower has several options. In this regard, with a work loan, anything is possible, as long as it does not require a building permit.
Here is a list of the types of work financed by this loan:
- Renovation of the house or a room: masonry, redoing the roof, replacing a broken boiler, heating, renovating the kitchen, renewable energy and upgrading to electrical standards among others.
- Interior fittings: insulation of the attic, installation of double-glazed windows, etc..
- Extension work (not subject to a building permit): this may concern a garage, a terrace. It is even possible to enlarge a swimming pool or install a veranda among others.
- Embellishment and Decoration work: painting work, tapestries, floor coverings, transforming the decoration of the whole house, purchase of furniture, etc..
- Purchase of household appliances and equipment: dishwasher, oven, hob, air conditioner, electric gate, stove, washing machine, shower cabin, etc..
Obviously, a works loan is very useful for financing various projects, as long as the amount borrowed is not allocated to a specific project. In the event that the borrower does not want to carry out the renovation of the house on his own, he can use the loan to pay the costs of a professional provider. This means that the borrower will be free to spend the loan money as he sees fit, as long as he uses it to finance work..