What Are Home Renovation Loans?

Home renovation loans are specialized loans designed to fund home improvement projects, such as remodeling, repairs, or upgrades. Loanpao helps you secure the best options in India for 2025.

Benefits of Home Renovation Loans

Key advantages include:

  • Flexible Use: Funds can be used for repairs, extensions, or aesthetic upgrades.
  • Tax Benefits: Eligible for tax deductions under Section 24(b) up to ₹30,000 annually.
  • Lower Interest Rates: Often lower than personal loans, ranging from 8–12% p.a.
  • Quick Disbursal: Fast approval and disbursal for urgent renovations.
  • Customizable Tenure: Repayment periods from 1–15 years for affordability.

Eligibility Criteria for Home Renovation Loans

Common requirements in 2025:

  • Age: 21–65 years.
  • Income: Minimum ₹25,000 monthly for salaried; ₹3 lakh annually for self-employed.
  • Credit Score: Preferably 750+ for better rates.
  • Property Ownership: Ownership proof of the property to be renovated.
  • Documentation: KYC, income proof, and renovation cost estimates.

Home Renovation Loan Comparison

Typical terms from top lenders in 2025:

Lender Type Interest Rate Loan Amount Tenure Processing Fee
Banks 8–10% p.a. ₹1 lakh–₹50 lakh 1–15 years 0.5–1% of loan amount
NBFCs 10–14% p.a. ₹50,000–₹25 lakh 1–10 years 1–2% of loan amount

How to Apply for a Home Renovation Loan with Loanpao

Steps to secure financing:

  1. Assess Renovation Needs: Estimate costs for repairs or upgrades.
  2. Check Eligibility: Verify income, credit score, and property documents.
  3. Calculate EMIs: Use Loanpao’s EMI Calculator to plan payments.
  4. Compare Lenders: Review offers on Loanpao’s platform.
  5. Submit Application: Apply via Loanpao’s application page with documents.

Tips for Choosing the Best Home Renovation Loan

Maximize your loan benefits:

  • Compare Rates: Look for the lowest interest rates and fees.
  • Check Tax Benefits: Ensure eligibility for deductions under Section 24(b).
  • Plan Renovation Costs: Get accurate estimates to avoid over-borrowing.
  • Negotiate Terms: Use Loanpao to negotiate lower rates or fees.
  • Opt for Shorter Tenure: Reduce interest costs with a shorter repayment period.

Frequently Asked Questions

Funds can be used for repairs, extensions, painting, or interior upgrades.

They can be either, but most are unsecured, requiring no collateral.

Up to ₹50 lakh, depending on lender and eligibility.

Yes, up to ₹30,000 annually under Section 24(b) for interest payments.

Loanpao offers lender comparisons, EMI calculators, and expert application support.

KYC, income proof, property documents, and renovation cost estimates.

How to Get Started with Loanpao

Finance your home renovation with Loanpao:

  1. Plan your renovation project and estimate costs.
  2. Use Loanpao’s EMI Calculator to budget EMIs.
  3. Compare lender offers on Loanpao’s platform.
  4. Apply via Loanpao’s application page with expert guidance.

Apply Now