Description

Timely repair and maintenance of homes is a must to keep it in a good state. Every home demands painting, remodelling, change of electric fitting and restoration. It protects the home from wears and tears that are caused due to rain, heat, cold and other natural forces at play. 

Home improvement might be a costly affair and can take a run on the savings. But home renovation loans are here to assist the user in times of need. It helps maintain the elegance and robustness of the property intact. With home renovation loan, one can help maintain the looks of the house without getting it heavy on pocket.

Top Banks/NBFCs/P2P lenders offering Home Renovation Loan

Home Renovation Loan are unsecured loans that a borrower avails for repairs and restoration of the house. There are various lenders offering home renovation loans at affordable interest rates to individuals. 

Name of the Bank/NBFC

Loan Amount

Loan Tenure

Interest Rate

BOB

  • Rs 1 Crore for semi-urban areas
  • Rs 5 Crore in other Metro Cities
  • Rs 10 Crore for Mumbai

Including Moratorium Period, the maximum tenure is 30 years. 

Base Rate – 9%

DHFL

Up to Rs 30 lakhs

10 years

9.75% onwards

Kotak Mahindra

75 lakhs and above

15 years

10.99% onwards

ICICI

Up to 20 lakhs

--

11.25%

HDFC

75 lakhs and above

15 years

8.25% onwards

Canara

Up to Rs 2 lakh

5 years

11.10%

Bajaj Finserv

Up to Rs 25 lakh

5 years

12.99%

Tata Capital

Up to Rs 25 lakh

6 years

9.60% onwards

Bank of Baroda Home Improvement Loan:

BOB offers home renovation loans to upgrade and make your dream home a reality. The loan can be taken to do maintenance of house as well as purchase furniture and furnishings or electronics. It is easy to avail and requires minimal documentation. 

Features of BOB Home Improvement Loan

  • Indians and NRIs who are salaried and self- employed are eligible for  home improvement loans. However, HUFs cannot apply for the same.
  • The eligibility of the loan amount depends on factors like income, location, repayment capability. For semi-urban areas and rural areas and up to Rs 1 crore and up to Rs 10 crore in Mumbai region. For other metro cities a maximum amount on home improvement loan is Rs 5 crore.
  • The bank offers floating interest rates on home improvement loans. The final interest rate on home improvement loan is decided on the basis of the CIBIL score of the applicant and co-applicants.
  • The bank allows for a moratorium period of 36 months during which borrower is not required to pay the instalments. 

DHFL Home Renovation Loan

DHFLs home renovation loan are available to borrowers in a hassle-free manner. Borrower can fill in the form online or visit any branch nationwide. The DHFL home improvement loan is designed to add value to your new or existing home, by making the application process simple and hassle free.

Key Features 

  • The loan is extended for a period of 10 years and cannot be extended further to the retirement age or 60 years (whichever is earlier).
  • Up to 100% of improvement estimate subject to a maximum of 90% of its market value (whichever is lower) for the loan requirement up to Rs 30 lakhs.

Kotak Mahindra Bank Home Improvement Loans

All the repairs and maintenance work of the home will be taken care of by Kotak Mahindra Bank’s Home Improvement Loan. The home can be given the dream look and made to a place where you feel to come back to.

Key Features

  • Up to a maximum loan amount of 90% for loans above Rs 75 lacs and up to 80% for loans between Rs 30-75 lacs can be availed.
  • The loan can be applied for an individual or a joint ownership.
  • The loan can be applied for a maximum tenure of 15 years subject to the retirement age and may vary as per the profile.
  • The sole discretion of the loan approval is by the bank subject to the guidelines issued by RBI from time to time, basis the applicant’s eligibility.

ICICI Bank’s Home Improvement Loan

The bank provides loan to existing and new customers planning to do repairs and maintenance work of home. The loan will be extended for Painting, flooring and tiling, water proofing, plumbing and sanitary work etc.

Key features

  • The work for which the loan is taken must be finished within 1 year.
  • Indian resident individuals who are salaried or self-employed with a regular source of income can apply for this loan.
  • A maximum loan of up to Rs 50 lacs can be applied with the bank.

HDFC Home Improvement Loan

For giving the much-needed upgradation to the home, HDFC home Improvement loan provides funds to borrowers. Borrower can perform the necessary restoration work and make it a more comfortable living space.

Key Features

  • The loan is extended to Indian Citizens, NRIs, OCIs to perform repairs such as tiling and flooring, internal and external plaster, painting etc. 
  • Simple and hassle-free documentation
  • Loans available at interest rates of home loan

Canara Bank Home Renovation Loans

At incredibly low interest rates the home improvement loan by Canara Bank is provided for furnishing of houses or for purchase of household furniture’s or electronics. 

Key Features

  • Individuals of Indian origin and NRIs are eligible for this who are salaried individuals, professionals, self-employed individuals.
  • The loan will be available for a loan amount of Rs 2 lacs.
  • The loan amount is available for instalments of up to 60 months.
  • The bank asks for the collateral to be put up as security of house/flat. Personal guarantee or suitable co-obligation.

Bajaj Capital Home Renovation

For individuals looking for funds for home improvement can look up to Bajaj Capital Home Renovation Loan. Borrowers should apply after looking at the eligibility criteria.

Key Features

  • Borrowers can get financial assistance up to Rs 25 Lakh
  • It is available to Indian Citizens between 25 – 58 years of age.
  • Individuals having a stable income who are able to repay the loan amount timely can avail the loan.

Tata Capital Home Improvement Loan

Be it of the interiors or repair and maintenance of homes, Tata capital Home Improvement Loans provide funds for the repair work of homes. It will help giving home a new look and address the wear and tear of it due to natural forces.

Key Features

  • The loan is available for a maximum amount of Rs 25 lakhs
  • The repayment period of the loan amount is from 12 to 72 months
  • The loan taken can be used for the purpose of repairs, renovation or to give home a makeover.
  • No collateral needs to be put up for availing the loan

Home Renovation Loan: Features and Benefits

The flexibility of loan options allow us to make choices of availing it. Let us look at the features and benefits of the home renovation loan.

  • Borrower do not have to do a lot of hassle in availing the home renovation loan
  • The loan is offered to both existing and new customers of the bank
  • There are options of availing loans at fixed and floating interest rates that are meant for taking easy loans.
  • The lender may issue entire amount of loan or up to 90% of the loan amount to cover up the cost.
  • Borrower need not be an existing customer of the bank to avail the loan. Existing customers may enjoy added benefits. New customers get up to 80-90% of the loan amount while existing customers may get complete loan amount. 

Home Renovation Loan: Eligibility Criteria

Different banks have different eligibility criteria to offer the loan:

  • Individuals applying for the loan should be minimum of 21 years of age. Maximum age is limited to retirement age.
  • Borrowers can apply for the loan as individual or jointly with other owners of the house being the co-applicants.
  • Borrowers who are salaried or self-employed can apply for the loan.
  • The loan can be applied individually or jointly with co-applicants
  • Organisations also are eligible to apply for the loan
  • Organisations applying for the loan should be profitable in the last few years
  • The owners of the property will have to be co-applicants of the loan

Home Renovation Loan: Documents Required

  • Passport sized photograph
  • Application form
  • KYCs of Identity Proof and Address Proof
  • Latest Salary Statements and form 16
  • Bank Statements covering last 6 months details
  • Audited balance sheets and profit and loss statements
  • Quotation from the architect on estimated costs of renovation and repair

FAQs

Q1How can I apply for Home Improvement loan?
Individuals seeking home improvement loan can either apply online or offline. On applying through the online method one needs to fill in the application form and upload the necessary documents. On qualifying the eligibility the loan is disbursed to the borrowers bank account.
Q2Can I apply for home loan if one has not availed a home loan?
Yes, there is no need of having a home loan running simultaneously to apply for home renovation loan.
Q3Is prepayment possible for home renovation loan?
The prepayment facility differs from lender to lender. It also depends on the type of renovation loan one has applied for.
Q4What if the house pledged for is destroyed or damaged in natural calamity?
It is advisable to buy an insurance policy to cover such situations. Borrower still will have to continue the repayment of the loan alongside rebuilding the house.