Renovation Loan

Renovation Loan (or Home Improvement Loan) helps you upgrade, repair, or renovate your existing house without touching your savings. Offered by banks and NBFCs, it allows you to pay for improvements in easy EMIs.

What can you use it for?

• Painting or tiling
• Kitchen or bathroom upgrades
• Electrical and plumbing work
• Flooring and structural changes
• Furniture and modular kitchens (in some cases)

How it works:

• 1. Top-Up on Existing Home Loan
  • Apply for a top-up if you already have a home loan
  • Typically offers lower interest than a personal loan
• 2. Standalone Renovation Loan
  • Separate loan for renovation only
  • Tenure usually 5–15 years
  • Interest higher than home loans but lower than personal loans

Key Features

Feature Details
• Loan Amount ₹50,000 to ₹30+ lakhs (depends on need & eligibility)
• Interest Rate~8% to 12% (varies by lender)
• Tenure 1 to 15 years
• Collateral May be secured (home as collateral) or unsecured
• Tax Benefits Eligible under Section 24 – up to ₹30,000/year interest deduction for self-occupied homes

Things to Keep in Mind:

• Proof of renovation may be required (estimates, invoices)
• Banks may inspect the property
• Good credit score and repayment history help
• Some lenders combine renovation loans with home loan balance transfers