Home works: financing without an interest-bearing loan
AmanaFi team · Updated · 1 min read
For works, the safest way is to cost, prioritise and phase. Splitting a project into stages financed by savings avoids an interest-bearing loan and leaves room to adjust along the way.
Cost and prioritise
Ask for several written quotes and rank the works.
- Urgent: safety, waterproofing, failing installations.
- Important: comfort, insulation, bathroom.
- Wanted: looks, comfort fittings.
Phase it
Split the project into phases, each with a budget and a date. Save for the next phase while you enjoy the previous one. Plan a 10 to 20% margin for surprises, frequent in renovation.
Alternatives to interest-bearing credit
Depending on your situation, participatory financing of the ijara or murabaha type, an interest-free loan from relatives or staged payment with the tradesperson, agreed in writing, can be considered. Always compare the total cost and have the contract validated.
Frequently asked
Can I pay the tradesperson in instalments?
Yes, if the schedule is agreed in advance and in writing, with no surcharge for deferred payment. Never pay everything before the works progress.
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