Posted by: islamicfinancingnews | June 2, 2012

Islamic loans make home improvement projects easier

Choosing Sharia compliant Islamic loans can help to fund improvements to your home. While saving up for a major home renovation project sounds like a good idea, the reality is amassing a large amount of money could take years, while an unexpected financial emergency like repairs to a leaking roof or needing a new car in a hurry could take precedence over the intended use of those savings.

 

There are different options available to homeowners when it comes to home improvement loans. For example, a secured home equity line of credit or home equity loans are popular choices because the financing is based on the equity in your home and is usually accompanied by a low interest rate which is tax deductible. Other financing can include a homeowner loan, which is an unsecured loan based on income rather than equity, or a value added loan based on the value added to your home after completion of the improvement project. Understanding the difference between a fixed rate or variable interest loan is important whether you intend to repay the loan quickly or over the long-term.

 

Getting an Islamic loans that’s free from Riba can help when you’re planning a large home improvement project and your lender can help you choose the loan that’s right for you.

 


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