Need to make changes to a house? Discover personal credit for renovations.

Do you already know how personal credit for works works? Proceed with the process now and don't waste any more time: the credit intermediaries from Poupança no Minuto take care of everything. To better understand how this financing works, continue reading the article.

What is the purpose of a personal loan for renovations?  

A personal credit for construction purposes aims to renovate a property , whether to repair structure, plumbing or divisions.

Funding can be directed towards labor or materials. It can aim to resell the property or simply improve it for personal use.

This type of credit is a simple personal loan, where no collateral is required, with higher interest rates and shorter repayment terms.

What are the conditions for a personal loan for renovations?  

Currently, you can apply for a personal loan for renovations with a maximum financing of 75,000 euros, and with APR rates between 7.2% and 13.9%.

To understand the conditions you are willing to accept, you must decide the monthly amount you can pay for the credit. The most determining factor for defining the installment is the repayment term, because the longer the term, the less you will pay per month.

However, the shorter the term, even if you pay more per month, the total cost of the loan will be lower because there will be less interest.  

To better understand how much you can afford to pay per month, you should calculate your effort rate by comparing your monthly income to expenses with credits. The ideal is to have your effort rate up to 35%.

The trend may be to go to the financial institution where you are already a customer, but it is important to consult the various options available in the market to access the best personal loan proposal for works.

However, please note that if a substantially higher amount is needed for the works, a works loan (whether remodeling, rehabilitation, or requalification) can also be contracted in the form of a mortgage loan. In this case, there is already a guarantee: the property, but the interest rate and financing term can be more favorable, improving the effort rate and reducing the impact on the family's monthly expenses.  

In case of mortgage credit for works you should also know that there are notary and formalization costs of the financing, and the execution of the works is also controlled through inspections and partial releases of the financing amount contracted as the work is being carried out.

What documents are required to submit?

To apply for a personal credit for works, you must submit certain documents to prove your identity and that you have financial capacity to meet the installments of the same. Such as: financial capacity.

• ID card or citizen card;
• Proof of address, through water, electricity, gas, telephone bills, etc.  
• Last payslips, for employees under someone else's authority.  
• Last IRS form 3 for self-employed workers;
• Pension proof, for pensioners;  
• Bank of Portugal Credit Responsibility Map;  
• Budget by a professional, proving the cost and phases of the work/or proof of expenses for the materials of the work.

Is it possible to do a simulation online?  

Yes, currently it is possible to make online simulations in almost all banks, choosing the purpose, amount, and repayment term of the loan you want to contract. Visit here for more information.

So, you can simulate how much you will pay monthly as an estimate for your credit.

Making various simulations in different banks makes it easier to decide in which institution to advance the process.

So, after choosing, it's time to send the documentation and submit your request for approval.  

Considering the documentation you sent, banks may take between 24h and 48h to evaluate the documents and approve your credit request. However, depending on whether you need to send expense receipts or construction estimates, the approval period may be longer.  

When accepted, you can digitally sign the contract. After that, you will receive the loan amount in your bank account within the following 48 hours.

Let's do this? Contact the credit intermediaries at Savings in Minutes to move forward with your personal loan application process for construction. With a fast, helpful, and free service, they handle all communication with banks and bureaucracy.