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BAJAJ FINSERV DIRECT LIMITED

Home Renovation Loan

Know home improvement loan interest rates, eligibility, and required documents to successfully apply for the loan to revamp your home the way you want.

Max. Tenure 30 Years

Lending Partners 6+

Max. Amount ₹15 Crores

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Home Loan EMI Calculator

Home Loan Eligibility Calculator

Home Loan Interest Rate

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Tax Benefits for Home Loan

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A home renovation loan helps you transform your house into your dream home. You can use it for repairs, structural upgrades, or to expand your living space. These loans come with various features like affordable interest rates, tax benefits, a high Loan-to-Value (LTV) ratio, etc.

However, before starting the application process, you need to check the eligibility criteria and document requirements. Compare various home improvement loan options and offers to ensure that you select the best one and maximise your loan benefits.

How Do Home Renovation Loans Work

Lenders provide home renovation loans to fund repairs, upgrades, or extensions to your property. They disburse the loan either in full or in stages, based on your renovation plan and cost estimates. You repay the loan through EMIs, similar to a regular home loan.

Features of Home Renovation Loan

The features of a home improvement loan closely match those of a regular home loan, except in how the borrower uses the funds. Here are some of the prominent features of home renovation loans:

Affordable Interest Rates

The home renovation loan rates are quite affordable, helping you save on your monthly outgo.

To secure the lowest interest rate, you need to meet the lender’s eligibility criteria with a strong financial profile.

High LTV Ratio

Some lenders finance up to 90% of your estimated renovation cost, giving you access to substantial funds for your project.

This lets you plan bigger or higher-quality renovations without disrupting your cash flow.

Flexible Loan Tenure

You can select a repayment tenure for up to 30 years. The longer tenure will reduce your monthly EMI amount and make it easier to manage your budget.

Tax Benefits on Home Improvement Loan

The home improvement loan tax deduction is applicable when the person uses the loan amount to carry out improvement work on his home. This also includes the loan taken for repair work and renovation works like painting & plumbing works.

As per Section 24 of the Income Tax Act, 1961, tax exemption is applicable on the interest paid on a home improvement loan. However, this tax rebate on home improvement loans has a maximum limit of ₹30,000 per annum. This rebate will be a part of the overall tax benefit of ₹2 Lakhs available under this section for interest paid on home loans.

Do note, that you cannot claim tax deductions on the principal amount paid for a home renovation loan under Section 80C. These deductions are reserved for loans taken to construct or purchase a home.

Home Improvement Loan Interest Rates

Knowing loan rates helps you estimate EMIs, compare loan costs, and choose the most affordable option for your renovation. Take a closer look at the current home renovation loan interest rates of various lenders available on Bajaj Markets:

Lenders	Starting Interest Rates	Maximum Tenure
Bajaj Housing Finance Limited	7.40% p.a.	384 months
ICICI Bank	9% p.a.	360 months
Truhome Finance	11.5% p.a.	300 months
L&T Finance	8.60% p.a.	300 months
LIC Housing Finance	8.65% p.a.	360 months
Home First Finance Company	9% p.a.	240 months
Vridhi Home Finance Home Loan	12% p.a.	144 months
India Shelter Home Loan	13% p.a.	240 months

Disclaimer: The details mentioned above are subject to change at the lender’s discretion.  

Home Renovation Loan EMI Calculator

Your Home Loan EMI

₹ 7,995

Total Interest Amount

₹ 918,775

Principal Amount

₹ 10,00,000

Total Payable Amount

₹ 19,18,775

Loan Amount

Interest Rate

- +

Tenure

- +

Calculate Now

You can also make instant comparisons between loan offers from multiple Home Loan providers on Bajaj Markets.

Understanding your home renovation loan EMIs helps you plan your budget and manage repayments efficiently. Use the Home Loan EMI Calculator on Bajaj Markets to instantly calculate your instalments based on the loan amount, tenure, and interest rate.

You can compare offers from multiple lenders and select the best option for your renovation needs.

Tax Benefits on Home Improvement Loan

The home improvement loan tax deduction is applicable when you use the loan amount to carry out improvement work on your home. This also includes the loan taken for repair and renovation works, like painting and plumbing.

Under Section 24(b) of the Income Tax Act, 1961, interest on a home loan is deductible. This applies if the loan is for purchase or construction of a self-occupied house. The maximum deduction allowed is ₹2 Lakhs per financial year.

Under Section 80C, principal repayment on such a home loan is also eligible for deduction. This benefit is limited to ₹1.5 Lakhs and is available only under the old tax regime. However, if you use the loan for repairs, renovation, or reconstruction, the principal repayment is not eligible under Section 80C.

Home Renovation Loan Eligibility Criteria

The eligibility criteria for a home renovation loan may vary across lenders. However, here is a general list of home renovation loan eligibility parameters you may have to meet:

Age: You must be between 18 and 70 years of age
Employment: You must be either a salaried or self-employed individual
Citizenship: You can apply if you are an Indian citizen or a Non-Resident Indian (NRI)
Credit Score: Your credit score must be above 750
Residence: You can apply for a loan for your permanent or rented residence, where you have stayed for a minimum duration of 12 months before applying
Income and Employment: You must have a stable source of income

Disclaimer: Eligibility criteria are subject to change and may vary as per the lender’s terms and policies.

Documents required for Home Improvement Finance

Here are the documents you have to submit with your home renovation loan application:

Identity Proof: Aadhaar card, PAN card, driver’s license, passport, or voter ID
Address Proof: Utility bills, Aadhaar card, driver’s license, passport, or voter ID
Application Form: Duly filled application form with details mentioned on documents, with passport-size photos
Income Proof for Salaried Individuals: Salary slips/salary certificate of the past 3 months, bank statements of the past 6 months, ITR, and recent Form 16
Income Proof for Individuals in Self-Employment: Profit/loss statements and balance sheets with schedules of the entity of business (for the past 3 years) validated by a CA, ITR for the past 3 years, and individual bank statements

Note that NRIs have to provide similar documents, such as a copy of employment contracts, quarterly salary certificates and statements of bank accounts for the past 6 months.

Disclaimer: You may be asked to submit additional documents beyond the mentioned ones. Requirements may vary by lender.

How to Use Home Renovation Loans

Here are some practical ways to use this financing option:

Upgrade Essentials

Replace old fixtures, buy new furniture, or upgrade your home electronics. These improvements increase your home’s value without affecting your savings.

Revamp Interiors

Redesign living spaces with fresh layouts, modern décor, or contemporary furniture. Use the home renovation loan to cover expenses without stretching your budget.

Modernise Your Kitchen

Update cabinets, countertops, flooring, and ventilation. The loan lets you transform your kitchen without paying up front.

Transform Bathrooms

Install modular bathrooms, new showers, bathtubs, or luxury fittings. Renovate your dream shower space while keeping costs manageable.

Redesign Rooms

Modify balconies, walls, or layouts to alter existing spaces or create new rooms. The loan finances structural changes efficiently.

Replace Doors and Windows

Upgrade old or damaged doors and windows to enhance comfort and energy efficiency. Prioritise the home renovation loan for essential replacements.

Create a Terrace Garden

Convert your terrace into a garden with plants, grass flooring, swings, and lighting.

Guide for Choosing the Best Home Improvement Loans

Choosing a home improvement loan is an important decision. However, the process can be tedious and time-consuming. Here are some points that you must keep in mind while choosing a home renovation loan:

Understand Your Needs

You need to decide the kind of home loan that you want. Make an estimate of all the required changes to your home, and then make a budget to further help you understand the amount you need.

Research and Compare Lenders

Considering all the available options for the loan will help you get the best deal. When picking a lender, consider these points:

Check the associated fees and charges
Avoid borrowing more money than you need
Use a home renovation loan interest rate calculator to plan your budget
Choose a convenient loan repayment duration
Check the loan disbursal time to see if you will get the funds when needed
Choose a lender that offers proactive customer service
Ensure you have a good credit score, since it helps you get the loan quickly and easily

Understand the Application Process and Other Formalities

Once you decide on the lender, you need to start gathering the required paperwork. You can get in touch with the customer care executive online or offline to understand the formalities. You can seek guidance about the loan tenure, the loan options, etc.

How to Apply for a Home Renovation Loan

On Bajaj Markets, you can choose from some of the leading lenders in India. To apply, follow these steps:

Click on the ‘Check Offer’ option on this page
Select your requirement and profession
Enter your mobile number
Accept the terms and conditions after reading them carefully
Click on ‘Apply Now’
Check your offers and choose one as per your needs
Upload and verify documents

Once you complete the application, you will have to wait for processing and approval. Upon approval, you will receive the sanctioned loan amount in your bank account. You can apply either individually or jointly if you want to apply with co-applicants.

Getting a home renovation loan can be a smart decision, but you must plan for it. Check recent interest rates, eligibility criteria and documentation to make the borrowing process easy.

For a convenient home renovation loan application process and other benefits, apply on Bajaj Markets. With a simple digital application, you can get a loan at affordable interest rates and enjoy various other benefits.

Home Loan for Women	Bridge Loan
Home Loan Guarantor	Home Loan for CA
Home Loan Hidden Charges	Home Equity Loan Interest Rates
Home Loan Overdraft Facility	Home Extension Loan
Home Loan Procedure	Home Loan Against FD
Home Loan Processing Fees	Home Loan Closure
Home Loan Sanction Letter	Home Loan Disbursement
Home Loan Statement	Home Loan Down Payment
Home Loan Top-Up	Home Loan for Bank Employees

Frequently Asked Questions

What is the maximum loan available for a home improvement loan?

The maximum home renovation loan amount varies from bank to bank and depends on various factors. The maximum loan amount, in case you get it from a Bajaj Markets partner, can go up to ₹15 Crores. Some lenders have an LTV ratio where you can get a portion of the estimated cost as a loan.

Can I buy furniture for my house with a home improvement loan?

Some lenders allow you to use a home improvement loan for furniture and fittings, while others restrict it to structural or permanent renovations. Review your loan agreement to verify the permissible expenses.

What kind of security will I have to provide for a home renovation loan?

For a secured loan, lenders usually take your property as primary security. They may also request additional security, such as a life insurance policy or a third-party guarantee.

When will I be able to get a house improvement loan disbursement?

The lender disburses the house improvement loan after approving the loan, completing all legal and technical checks, and receiving your required contribution or down payment.

Is it possible to get a loan for both home repair and interior upgrades?

Yes, you can finance both home repair and interior upgrades. Choose a financing option, such as a dedicated home renovation loan or a personal loan, that best suits your needs.

Can I prepay or foreclose a home improvement loan without penalties?

Yes, you can often prepay or foreclose a floating-rate loan without penalty. However, fixed-rate loans may include a small prepayment fee.

Are there any hidden charges in home improvement loan processing?

Home improvement loans include costs beyond interest, such as processing fees or legal charges. Review the lender’s terms carefully to understand all charges.

Can I combine a home renovation loan with my existing home loan?

Yes, you can combine them by taking a top-up on your existing home loan or by taking a separate personal or renovation loan.

How to track the disbursement of my home renovation loan online?

Log in to your lender’s website or mobile app using your loan account or application number. Check your dashboard or loan section for the current status and disbursement details.