Precisa de fazer alterações numa casa? Conheça o crédito pessoal para obras

Need to make changes to a house? Find out more about personal credit for renovations: [URL].

Are you going to buy a property that needs renovations? Or just improve a house you already own? Either way, there is a solution: personal credit for renovations. It is a simple financing option that can be contracted digitally. Find out how it works.

04 Sep 20234 min

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Do you know how personal credit for construction works? Move forward with the process now and do not waste any more time: the credit intermediaries at 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 construction?

A personal loan for renovations is intended to renew a property, whether for repairing structure, plumbing, or partitions.

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 credit for construction works?

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

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

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

To better understand how much you can pay per month, you should calculate your debt-to-income ratio based on your monthly income compared to credit expenses. Ideally, your debt-to-income ratio should be up to 35%.  

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

However, note that, if you need a substantially high amount for the works, the works credit (whether for remodeling, rehabilitation or requalification) can also be contracted in the form of a mortgage credit. In this case, a guarantee is already given: the property, but the interest rate and financing term can be improved, improving the effort rate and reducing the impact on the family's monthly expenses.  

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

What documents are needed to deliver?  

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

  • Identity card or citizen card;  
  • Proof of address, through water, electricity, gas, phone bills, etc;  
  • Latest payslips, in case of employees;  
  • Latest version 3 of the IRS, for self-employed workers;  
  • Proof of pension, for pensioners;
  • Credit responsibilities map of the Bank of Portugal;  
  • Budget by a professional, proving the cost and phases of the works/or proof of expenses for the materials of the work.

Is it possible to do an online simulation?

Yes, it is currently possible to make online simulations in almost all banks, choosing the purpose, amount, and repayment term of the loan you want to hire.  

So, you can simulate how much you will be paying for your monthly installment estimate on your credit.

By making various simulations in different banks, it is easier to decide in which institution one wants to proceed with the process.

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

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

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

Let's do this? Contact the credit intermediaries of Poupança no Minuto to proceed with your personal credit contracting process for construction work. With a quick, helpful, and free service, they handle all communication with banks and bureaucracy.

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