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✓ Home Loan from ₹5 Lakhs To ₹5 Cr ✓ Multiple Lending Partners ✓ Attractive Interest Rates

You may have the home that you want, but there is always the need for repair or renovation from time to time. Renovation could involve the alteration of a structure of your present residence or any other major repair work undertaken. Needless to say, any home renovation activity involves a substantial expense. Moreover, you may need to conduct urgent repairs that require attention immediately. Home renovation loans are handy at such times and can offer a reprieve from having to dig into your savings. 

 

Several banking institutions and non-banking financial companies (NBFCs) provide home renovation loan products that offer a significant amount of flexibility with longer loan repayment tenures. This enables you to repay your loan amounts with ease at your degree of capability. Furthermore, these loans have longer repayment tenures and interest rates that are competitive with other kinds of loans. In the passages that follow, you get a lowdown on the eligibility criteria that must be met, documents needed and key banks that offer you a house renovation loan. This lets you decide which bank to apply to according to your distinctive home renovation requirement.

Home Renovation Loan Eligibility Criteria

Whether you seek a home interior loan or a loan to conduct any other type of structural repair, you have to first fulfill certain criteria that make you eligible to avail a loan. These are mentioned below: 

  • Applicant’s Age: The applicant’s minimum age should be 18, and the maximum age should be 65 years.

  • Residential Status: The applicant should be an Indian resident or a non-resident Indian. 

  • Applicant’s Employment Status: The applicant must be a salaried individual or a self-employed person. 

  • Type of Residence: The applicant should possess a permanent residence or a rental accommodation in which the applicant should have lived for a year prior to the loan application.

  • CIBIL/Credit Score: For any kind of loan, be it a house renovation loan or a personal loan, you need to exhibit a good credit score. This should typically be 700 plus, though some banks prefer a score of 750. An appropriate credit score proves your ability to repay loans on time. 

Documents for Home Renovation Loans

The documents you need to submit to get approval of a home renovation loan are typically in support of your eligibility criteria. The documents you have to submit with your applications are listed here:

  • Proof of Identification: You need any one of these: An Aadhaar/PAN card, a driver’s license (should be valid), a valid passport, or a voter ID.

  • Proof of Address: You should have one of the following: any utility bill, an Aadhar card, a valid driver’s license, a valid passport, or a voter ID.

  • Application Form: You need to submit an application form with all your details mentioned as they are on your eligibility documents, with three passport size photos duly affixed on the form.

  • Income Proof for Salaried Individuals: You have to submit salary slips/a salary certificate for the past 3 months, bank statements showing credits of salary for the past 6 months, Returns of Income and the most recent Form 16. 

  • Income Proof for Individuals in Self-Employment: Profit/loss statements and balance sheets with schedules of the entity of business (all for the past 3 years) duly validated by a chartered accountant, have to be submitted. Returns of Income and the income computed for past 3 years of assessment of the business and individual have to be additionally given. Furthermore, bank statements of the business and individual bank statements need to be submitted at the time of application of home renovation loans. 

It should be noted that Indians who are not residents have to supply similar documents, such as a copy of employment contracts, quarterly salary certificates and statements of bank accounts for the past 6 months. 

Banks and Institutions Offering Home Renovation Loans

Several popular banks and NBFCs provide you a home loan or a renovation loan. Once you have your eligibility criteria and documentation in order, all you need to do is apply for the loan from any of the following reliable institutions: 

  • Bajaj Finserv Home Renovation Loan: You can take a personal loan from Bajaj Finserv, giving you the benefit of loan amounts up to Rs. 25 lakhs to renovate or improve your home. With flexible loan tenures, you can easily pay back loans, and repay interest only on the amounts of the loan that you utilize. 

  • TATA Capital Home Renovation Loan: You get an interest rate of 10.99% per year with a loan tenure of 6 years. The processing fee is a maximum of 2% of the amount of the loan. Here, although the relative interest rate may be high, you needn’t show any collateral when you apply for home renovation loans. 

  • Bank of Baroda Home Renovation Loan: With a relatively low interest rate starting at 6.85% per year, you get a loan tenure of up to 30 years. The processing fee is 0.05% of the loan amount, and this has to be paid while applying. You get a maximum loan amount of Rs. 10 crores and this loan can be taken for renovation, repair or improvement of the present property. 

  • HDFC Bank Home Renovation Loan: For this loan, interest starts at 7.55% per year, and you get a flexible loan tenure of up to 15 years. The processing fee is 0.05% of the amount of the loan or Rs. 3,000 (any which is higher). For self-employed people, the processing fee is up to 1.50% of the loan amount, or Rs. 4,000, the higher of the two being applicable. Applicable taxes are charged on the loan and the interest rates are the same as the home loan interest rates. Furthermore, there is no prepayment penalty whether you make partial or full repayments.

  • IIFL NRI Home Renovation Loan: This is a house renovation loan scheme offered to NRIs with an interest rate at 8.70% per year. You get a loan tenure of a maximum of 20 years. The processing fee is 0.75% of the amount of the loan you take, or Rs. 3,000 (the higher is applicable). There are no prepayment charges for individual borrowers, but a fee of a maximum of 5% of the amount of the loan may be charged. This is applicable according to the time after which the last disbursement of the loan was made. Moreover, foreclosure charges apply if you prepay the loan entirely. Besides all this, the application procedure and loan sanction is rapid, and you get a feature-rich scheme. 


It's not a bad idea to take a home renovation loan, but you must plan ahead for it. Check recent home renovation trends. This means having your eligibility criteria and documentation in order. According to your individual requirements, if all is in place, you can take a loan for home renovation very easily.