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Home Renovation Loans are offered to applicants planning to refurbish or enhance their homes in several ways such as flooring, painting, tiling, upgradation, remodeling, repair, improvement, extension etc. Many banks, NBFCs and HFCs offer home renovation loans as variant/sub-type of personal loans and/or home loan.
Additionally, one can also avail personal loan to carry out home renovation/improvement/extension as personal loans do not come with any end-usage restriction except for speculation. Existing home loan borrowers can also apply for top-up home loans offered over and above the existing home loans, for home renovation purposes.
Note that personal loans for home renovation are offered as unsecured loans whereas home loans availed for carrying out home renovation and top up home loans are provided against mortgage of the property to be renovated.
Personal Loans availed for Home Renovation
The personal loan interest rates offered for home renovation usually start from 10.49% p.a. However, some PSU banks offer personal loans at lower interest rates. The tenures of personal loans go up to 5 years, with select lenders offering longer tenures. The biggest advantage of availing personal loans for home renovation are their quick loan processing and disbursal. Lenders usually take 2-7 working days for processing and disbursing personal loans. However, an increasing number of lenders have put in place an end-to-end digital processing of personal loan applications leading to quicker customer on-boarding and loan disbursal. Many lenders also offer pre-approved instant personal loans to their select customers based on their credit profile. The pre-approved nature of such personal loans allow them to be disbursed within a few minutes or hours of making loan application.
Personal Loans for Home Renovation are offered by top banks and NBFCs including Axis Bank, Bajaj Finserv, SMFG India Credit, HDFC Bank, IndusInd Bank, YES Bank and Tata Capital.
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Lenders offering Personal Loans for Home Renovation
| Banks/NBFCs | Interest Rates(p.a.) | |
| Axis Bank | 11.25% onwards | Apply Now |
| IndusInd Bank | 10.49% onwards | Apply Now |
| IDFC First Bank | 10.99% onwards | Apply Now |
| HDFC Bank | 10.85% onwards | Apply Now |
| ICICI Bank | 10.85% onwards | Apply Now |
| Kotak Mahindra Bank | 10.99% onwards | Apply Now |
| Tata Capital | 11.99% onwards | Apply Now |
| Federal Bank | 12.00% onwards | Apply Now |
| DMI Finance | 12.00% - 40.00% | Apply Now |
| L&T Finance | 12.00% onwards | Apply Now |
| Kreditbee | 16.00% - 29.95% | Apply Now |
| MoneyTap | 13.00% onwards | Apply Now |
| Piramal Finance | 12.99% onwards | Apply Now |
| Aditya Birla | 10.99% onwards | Apply Now |
| Moneyview | 14%-36% | Apply Now |
| Cashe | 27.00% onwards | Apply Now |
Note: Rates as of 19th November 2024
The applicants can also apply for regular personal loans offered by all banks and NBFCs with no end-usage restrictions, to meet the expenses related to home renovation/improvement/extension.
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Home Loans for Home Renovation
Most banks and HFCs offer home loans for home renovation/improvement. Being secured in nature, the interest rates of such home loans are lower than unsecured personal loans. The interest rates of home renovation/improvement loans start from 8.40% p.a. onwards, depending on the applicant’s credit profile. Such loans also offer longer tenures (up to 30 years) than personal loans. Thus, applicants planning to borrow a higher loan amount can apply for Home Loans for Home Renovation.
As availing home loans for home renovation would create lien on the underlying property, those requiring smaller loan amounts for shorter tenure should prefer personal loan. Similarly, the processing time of home loans usually goes up to 2 weeks or more. Hence, those requiring loans for home renovation with shorter turnaround time should prefer personal loan.
Note, one can apply jointly or individually for Home Renovation Loans. Adding the income of the co-applicant can help in getting a higher loan amount. A few banks and HFCs also offer preferential interest rates to women borrowers availing home renovation loans.
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Lenders offering Home Loans for Home Renovation
| Banks/HFCs | Interest Rate |
| HDFC | 8.70% p.a. onwards |
| State Bank of India | 8.50%-9.85% p.a. |
| Bank of Baroda | 8.40%-10.60% p.a. |
| L&T Housing Finance | 8.60% p.a. onwards |
| Tata Capital | 8.75% p.a. onwards |
| PNB Housing Finance | 8.50%-11.45% p.a. |
Note: Rates as of 19th November 2024
Top-up Home Loans for Home Renovation
Home loan top-ups are offered to existing home loan borrowers, over and above the existing home loans, for personal purposes. Thus, existing home loan borrowers requiring extra funds for carrying out home improvement or renovation can avail top-up home loans. The loan tenure of top-up home loans will be the same as the outstanding home loan tenure. The interest rates would also be lower than personal loans.
Lenders offering Top-up Home Loans
| Banks/HFCs | Interest Rate |
| HDFC | 9.05% – 10.70% p.a. |
| State Bank of India | 8.80%-11.30% p.a. |
| IDFC First Bank | 8.85% p.a. onwards |
Note: Rates as of 19th November 2024
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Eligibility Criteria for Applicants availing Home Renovation Loans
The eligibility criteria for home renovation loans can vary across lenders and depending on the type of loan facility — personal loan or home loan. Top-up home loans can be only be availed by existing home loan borrowers. The common eligibility criteria for personal loan for home renovation and home loan for home renovation is mentioned below.
- The applicants should not be more than 70 years at the time of loan maturity
- Both salaried and self-employed individuals can avail loans for home renovation
- The applicants should have a minimum monthly income of Rs 15,000
- The applicants having credit scores of 750 and above have higher chances of availing home renovation loans at lower interest rates.
Documents Required while applying for Home Renovation Loans
- ID Proof- Aadhar card, PAN card, voter ID, driving license, passport
- Address Proof- Electricity bill, ration card, telephone bill, passport, Aadhar card, PAN card, voter ID
- Salary slips for past 3 months/Form 16/bank statement of last 6 months for salaried applicants
- Proof of business existence, ITR for last 3 years and bank account statement for last 12 months for self-employed applicant