Top 5 Home Renovation Loans In India

The lending institutions can provide up to 90 percent of the cost of a loan for renovations to your home. These loans can be used to repair or expand the existing property. As a homeowner, buying a home is not a requirement for purchasing an entire plot of land or an entirely new home. It is possible to buy an existing property. But there’s the possibility that the house does not meet your expectations. There may be urgent repairs, overhaul, or even a complete overhaul. This is when you could borrow a loan for home renovations to make the home more attractive according to your needs.

Features of A Home Renovation Loan

  • The amount of the loan: The loan amount can differ between banks and be anywhere from INR 25,000 in the range of INR 50 Lakhs. Most banks offer 70%-90 percent of the loan to help with home improvement. It is contingent on eligibility conditions, like the borrower’s income, the LTV ratio, or margin.
  • MarginBanks offer 15%-30% of the cost of the project as margin. The margin will be contingent on secured or not loans secured by a guarantor or co-applicant and the repayment duration.
  • Payback TenureThe size: The capacity to repay home renovation loans can have an estimated duration of 15 years, with an extended moratorium, as well as up to 20 years with or without the suspension. The relationship you have with your bank is crucial.
  • Processing cost: Home renovation loans come with a processing cost that ranges from 0.25 percent to 3 percent of the loan amount. However, some banks have waived the fee for borrowers who work in government-run establishments.
  • Pre-closure costs: Up to 4 percent on a fixed rate of interest. Zero on floating rates of interest.
  • Score of credit: A credit score is an essential requirement for loans to renovate homes. Banks view those with credit scores at or above 700 as dependable borrowers. However, those with scores less than 600 or nil may also apply for loans to renovate their homes. The approval will depend on the banking relationship.
  • Concession on interest Rates: Most banks offer female customers concession rates of 0.05 percent to 0.10 percent if they are joint owners. Certain banks also offer discounts of as high as 0.10 percent when renovating the green structure.
  • Moratorium Time: Home renovation loans have a moratorium time of 3 to 6 months.
  • GuarantorA Guarantor promises to make payments if the original applicant is not able to be able to pay for the EMI. The guarantor must present documents like evidence of income, proof of address identification, and proof of address.
  • Secure or Collateral Home renovation loans don’t require collateral or security, as do the construction loans you can get for purchasing a land parcel. If you want to borrow more value of the loan, banks could require you to offer a security as collateral. This usually refers to the claim against your home. Security may be secured against premiums that are paid towards the National Savings Certificate (LIC), Life Insurance Corporation (LIC), Kisan Vikas Patra (KVP), and other mutual funds. Secured loans have lower interest rates, and applicants must submit statements on their assets and liabilities to the bank.
  • Co-applicantA co-applicant can be a choice. However, loans made together with a co-applicant earn a lower interest rate. A person must be over 18 years old to qualify as a co-applicant. The applicant must provide evidence that proves income and address and proof of identity.
  • Insurance Coverage: It is recommended to include insurance protection on renovation loans. This insurance is similar in concept to the home loan program. Borrowers must pay the amount of premium in cash directly to an insurance company throughout their loan term.

Here Is A List of The Best Home Renovation Loans in 2023

PNB Housing Home Renovation Loan


  • PNB Housing offers loan amounts as high as 90 percent of the home’s worth.
  • Interest rates are within the range of 8.75 percent to 11.15 per year for professionals and salaried applicants.
  • For business people who are in the business world, interest rates vary between 8.75 percent to 11.15 percent.
  • There’s no maximum limit for the amount that can be used for a home improvement loan.
  • The maximum period of repayment available is 30 years. (Property should be secured with a mortgage to benefit from this facility.)

Bank of Baroda Home Renovation Loan

  • Up to Rs. 1 crore for semi-urban centers or five crore in metropolitan cities, Rs. 5 crore in urban cities, and the total is Rs. 10 crore for Mumbai.
  • A period of moratorium that is 36 months long can be offered for these loans, and the maximum repayment duration is 30 years. This includes the moratorium period.
  • The interest rates are tied to MCLR
  • The bank did not charge foreclosure charges at the expense of the banks.

Bajaj Finserv Home Renovation Loan

  • The loan amount can be as high as 25 lakhs. 25 lakhs
  • The maximum period of repayment is 60 months.
  • Processing time is minimal for applications since it’s an unsecured loan
  • Minimal documentation.
  • Rates of interest vary between 8.50 percent to 14.00% per year onwards.
  • Processing charges of 0.50 percent of the amount of the loan.

HDFC Bank Home Renovation Loan

  • The rates of interest range from 8.50 percent to 9.00 percent for female applicants
  • The rates of interest range from 8.50 percent to 9.00 percent for all other applicants
  • The maximum loan-to-value ratio of 90% is for homes with a value of up to 30 lakhs. 30 lakhs
  • The maximum loan-to-value ratio is 80% for a maximum amount of Rs. 75 lakhs.
  • The maximum ratio of loan-to-value is 75 percent for 75 lakhs or greater.
  • The maximum duration of repayment available is 15 years.

Kotak Mahindra Bank Home Renovation Loan

  • The maximum term of repayment is 15 years.
  • The amount of money available is based on the worth of the property
  • The LTV ratio could go as high as 90 percent of the value of the property
  • Interest rates are directly tied in direct relation to MCLR.


If you desire to renovate/repair/refurbish the structure of your existing property, a home improvement/renovation loan is the apt product for you. Please take one of them and reap the rewards.

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