When you need to renovate your home on an emergency basis, you can take a personal loan for home renovation in Singapore. But, instead of taking a personal loan as your first choice, you must weigh all the pros and cons between a personal loan or renovation loan. Below, we will tell you both the advantages and disadvantages of choosing a personal loan for renovation in Singapore.

Can I take a personal loan for home renovation in Singapore?

If you are planning to renovate your home in Singapore, do not consider a personal loan as your only option. This is because, in renovation loans, you will get a low-interest rate in comparison to personal loans. You need to opt for a personal loan for home renovation in Singapore after you learn how to check licensed money lender in the following circumstances.

  • You have to change contractors

Sometimes we cannot guarantee whether we can get the work that we desire from a certain contractor in terms of home renovation in Singapore. For this reason, if you decide to eliminate a contractor from your home renovation project or if your contractor quits before the completion of the project, you will have to get in touch with your bank. You need to do this if your bank happens to disburse the entire amount of the loan to your contractor.

Thus, you must pay half of the amount to the contractor when they begin working on your home renovation project and pay the remaining amount after the project gets completed. In the earlier scenario, if you do not get any more home renovation loans from your bank, you can go for a personal loan instead. And before you choose your next contractor, make sure to read their reviews on any online platform.

  • Going above budget

You can search where to find the best personal loan in Singapore if your contractor goes beyond your budget. To be on the safe side, you must always think that your renovation is going to have a higher budget in comparison to the initial project amount. In case you do not find your home renovation loan to be sufficient, you can therefore look for other options in the form of a personal loan in Singapore.

  • Better promotional rates for personal loans

At times, you can find personal loans at promotional rates. For instance, zero percent rate of interest for a period of six months. In case you think you can borrow the required amount and complete the entire payment of your home renovation within that period, you can choose a personal loan. However, you must clear the payment within time, as the more time you spend doing that, the higher your rate of interest will turn out to be. On the other hand, it can also mean that you will have to pay a higher amount than your renovation loan.

Difference between personal loans and renovation loans

Some of the differences that you need to look out for while opting for a personal loan or a renovation loan in Singapore are as follows.

Personal loan

  • Any person can make an application for a personal loan
  • You will not need to present any proof of purchase
  • Your rate of interest remains constant throughout the entire duration of the loan
  • You will have to show your income proof
  • The bank will credit the loan to your bank account, and for money lenders, you will directly receive the cash loan

Renovation loan

  • You need to show ownership of home proof
  • You will only have to pay for the cost of home renovation with your renovation loan
  • In addition to the income proof, you will need to show the contract of your home renovation
  • The contractor will get the loan amount of your renovation

Why are renovation loans better than personal loans?

It is best to get a renovation loan instead of a personal loan because of the latter’s high rate of interest. When you take a loan for your renovation, you will only need to pay a low amount of interest. That is why you will be in a position to maximise your cash flow every month. But, in case you need a higher amount for your home renovation, you can take a personal loan in Singapore.


It is best to opt for a renovation loan as they have a low interest rate. The only time when you can go for a personal loan is when they better promotional rates or the loan amount of your renovation surpasses your budget.

Clare Louise