Home Renovation Loans: Everything You Need to Know
- May 30, 2025
- Posted by: BLS
- Categories: Home Loan, Loan
Are you planning to revamp your kitchen, expand your living room, or repair old interiors? With property prices and labor costs on the rise, Home Renovation Loans in India can help you fund your dream home makeover without burning a hole in your pocket.
In this blog, we’ll explore what these loans are, how they work, their benefits, eligibility, and how to apply online in 2025.
What is a Home Renovation Loan?
A Home Renovation Loan is a type of loan offered by banks, NBFCs, and financial institutions that helps homeowners cover the costs of renovating, remodeling, or repairing their existing residential property.
You can use the funds for:
- Painting and flooring
- Plumbing or electrical work
- Bathroom/kitchen upgrades
- Structural repairs
- Modular furniture or décor changes
Why Choose a Home Renovation Loan in India?
Here are key reasons why Home Renovation Loans in India are growing in demand:
- No Need to Break Savings: Use your loan instead of spending your hard-earned savings.
- Flexible Repayment Tenure: Ranging from 12 months to 15 years.
- Low Interest Rates: Lower than personal loans due to secured nature.
- Tax Benefits: Interest paid may qualify for deduction under Section 24 of the Income Tax Act (up to ₹30,000 annually).
- Quick Online Processing: Instant loan approval and minimum paperwork.
Eligibility Criteria for Home Renovation Loan
To be eligible, you generally need to:
- Be an Indian resident (21–65 years old)
- Own the property being renovated
- Have a stable source of income (salaried or self-employed)
- Maintain a good credit score (preferably 700+)
Documents Required
Here are the common documents needed:
- Identity Proof (Aadhaar, PAN, Passport)
- Address Proof (Utility Bill, Aadhaar, Voter ID)
- Property ownership proof
- Income Proof (Salary slips, bank statements, ITR)
- Renovation estimate from contractor (in some cases)
How to Apply for Home Renovation Loans in India
Getting a renovation loan is simpler than ever. Follow these steps:
Step 1 – Choose the Right Lender
Compare interest rates, processing fees, and EMI plans from multiple lenders.
Step 2 – Fill Online Application
Apply through a reliable online loan platform like Better Loan Solutions with minimal hassle.
Step 3 – Upload Documents
Scan and upload basic documents like ID, address, income proof, and renovation estimates.
Step 4 – Verification and Disbursement
Once your application is verified and approved, funds are transferred directly to your account—often within 48 hours.
Loan Amount and Interest Rates
- Loan Amount: ₹50,000 – ₹50 Lakhs (based on income and property value)
- Interest Rates: Start from 8.5% p.a. onwards
- Repayment Tenure: Up to 15 years
Note: Exact rates depend on credit history, lender policies, and market conditions.
Things to Consider Before Applying
- Always compare lenders before finalizing
- Avoid over-borrowing; only take what’s needed
- Check hidden charges (processing fees, prepayment penalty)
- Maintain a strong CIBIL score to negotiate better terms
Loan Against Property vs. Home Renovation Loan
| Feature | Home Renovation Loan | Loan Against Property |
|---|---|---|
| Purpose | For home repairs/improvements | For any purpose |
| Collateral | Property (same being renovated) | Any owned property |
| Interest Rate | Lower | Slightly higher |
| Loan Tenure | Shorter (up to 15 years) | Longer (up to 20–30 years) |
Apply Now – Make Your Dream Home a Reality!
Don’t let finances hold back your renovation dreams. With fast approval and low-interest options, Better Loan Solutions is here to support your home upgrade journey.
👉 Apply Now and get your home renovation loan approved today!
Frequently Asked Questions (FAQs)
Q1: Can I get a renovation loan without property papers?
A: No, you must show ownership of the property being renovated.
Q2: What if I already have a home loan?
A: You can still apply for a renovation loan as a top-up, subject to lender approval.
Q3: Can I use the loan for rental property renovation?
A: Yes, if you are the legal owner and meet the eligibility criteria.
Q4: Is there a prepayment charge on these loans?
A: Many lenders waive prepayment charges, especially for floating interest rate loans.