Home renovation projects can breathe new life into your living space, increase property value, and improve overall comfort. However, financing these projects often requires careful planning, especially when it comes to selecting the right loan with favorable interest rates.
This article aims to help you navigate the landscape of home renovation loans by comparing interest rates and highlighting key factors to consider.
Dream Big, Renovate Smart – Apply for a Home Renovation Loan Today!
Top 10 Home Renovation Loan Interest Rate Offers | 2025
| Bank/ HFL | Interest Rates | Maximum Loan Amount |
|---|---|---|
| HDFC | 8.75% p.a. onwards | Contact the Bank |
| ICICI Bank | 10.85% p.a. onwards | Up to Rs. 50 Lakh |
| LIC HFL | 8.65% p.a. onwards | Up to Rs. 15 Crore |
| Axis Bank | 11.00% p.a. onwards | Up to Rs. 40 Lakhs |
| Bank of Baroda | 8.40% p.a. onwards | Up to Rs. 50 Lakh |
| Bank of India | 8.35% p.a. onwards | Up to 15% of Home Loan |
| Tata Capital | 11.99% p.a. onwards | Contact the Bank |
| IDFC First | 10.99% p.a. onwards | Contact the Bank |
| IIFL | 8.90% p.a. onwards | Up to Rs. 50 Lakh |
| Piramal Finance | 9.50% p.a. onwards | Up to Rs. 2 Crore |
HDFC Home Renovation Loan
HDFC offers home renovation loans with competitive interest rates and flexible repayment options. Enjoy a seamless application process with minimal documentation to finance your home improvement projects effectively.
| Highlights | Details |
|---|---|
| Special Interest Rates | 8.75% p.a. – 9.65% p.a. |
| Standard Interest Rates | 9.40% p.a. – 9.95% p.a. |
| Processing Fees | 0.50% of the loan amount or Rs. 3,300 (whichever is higher) + applicable taxes / statutory levies. |
| Tenure | 15 years |
| Maximum Funding | Existing Customer: 100% of the renovation estimate (subject to loan / total exposure not exceeding 90% of the market value of the property as assessed by HDFC Bank New Customer: 90% of the renovation Estimate |
Suggested Read: Small Bathroom Renovation Ideas
ICICI Bank Home Renovation Loan
ICICI Bank offers personal loans specifically designed for home renovations. Although the interest rates are slightly higher, these loans feature an easy application process, flexible loan amounts, and do not require any security or collateral.
| Highlights | Details |
|---|---|
| Interest Rates | 10.85% p.a. onwards |
| Processing Fees | 2% + taxes |
| Tenure | 6 years |
| Maximum Funding | Rs. 50,000 – Rs. 50 Lakh |
| Eligibility | 1. Must be an Indian Citizen 2. Age: 20 – 58 years 3. Income: Minimum Rs. 30,000 4. Provide ownership/ co-ownership proof |
LIC Home Improvement Loan
Benefit from some of the lowest interest rates in the industry, swift approval processes, and affordable EMIs.
| Highlights | Details |
|---|---|
| Interest Rate | 8.65% p.a. |
| Processing Fees | 2% + taxes |
| Maximum Funding | 90% of the estimated renovation |
| Tenure | Salaried: 30 years Self employed: 25 years |
Suggested Read: Impact of Home Renovation on Home Insurance Policy
Axis Bank Personal Loan For Home Renovation
Axis Bank offers personal loans for home renovations with competitive features tailored to your needs. While the interest rates may be higher, these unsecured loans require no collateral and provide flexible EMI repayment options.
Additionally, the application process is streamlined with minimal paperwork.
| Highlights | Details |
|---|---|
| Interest Rate | 11.00% p.a. onwards |
| Processing Fees | 2% + GST |
| Tenure | 5 years |
| Maximum Funding | Up to Rs. 40 Lakh |
| Eligibility | 1. Age: 21 – 60 years 2. Income: Rs. 15,000 minimum 3. Employment type: Salaried |
Bank of Baroda Home Improvement Loan
Bank of Baroda offers home improvement loans with low interest rates and minimal documentation requirements. Take advantage of flexible repayment options and a straightforward application process to enhance your home effortlessly.
| Highlights | Details |
|---|---|
| Interest Rate | 8.40% p.a. onwards |
| Processing Fees | 100% waiver, subject to terms and conditions |
| Tenure | 15 years (including moratorium) Moratorium: 6 months |
| Maximum Funding | Up to Rs. 50 Lakh |
| Eligibility | 1. Age: 21 – 60 years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Salaried/ Self Employed |
Suggested Read: Personal Loan vs. Home Loan Top Up
Bank of India Star Home Loan – Furnishing
Bank of India offers competitive home improvement loans with mortgages waived for amounts up to ₹5.00 lakh. Benefit from low interest rates, minimal documentation, and a transparent process with no hidden charges or prepayment penalties.
| Highlights | Details |
|---|---|
| Interest Rate | 8.35% p.a. onwards |
| Processing Fees | 0.25% of Loan amount: Min. Rs. 1,500 to Max. Rs. 20,000 |
| Tenure | 10 years |
| Maximum Funding | 15% of the home loan |
| Eligibility | 1. Age: 18 – 70 years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Salaried/ Self Employed/ Group/Association of Individuals/ HUF/ Corporates |
Tata Capital Home Renovation Loan
Tata Capital offers personal loans for home renovation and improvement. As a trusted name in the industry, they provide flexible repayment options. Although their interest rates are higher than some competitors, Tata Capital’s reliability and support make it a dependable choice for financing your home enhancements.
| Highlights | Details |
|---|---|
| Interest Rate | 11.99% p.a. onwards |
| Processing Fees | 0.25% of Loan amount: Min. Rs. 1,500 to Max. Rs. 20,000 |
| Tenure | 6 years |
| Maximum Funding | Rs. 40,000 – Rs. 35,00,000 |
| Eligibility | 1. Age: 21 – 58 years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Salaried/ Self Employed 4. Work Experience: 2 years 5. Minimum Salary: Rs. 15,000 |
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IDFC First Smart Personal Home Renovation Loan
IDFC First offers personal home renovation loan with a fully digital application process. This loan can serve as a top-up to your existing home loan without the need for collateral or security.
Benefit from zero foreclosure fees, providing a seamless and flexible borrowing experience.
| Highlights | Details |
|---|---|
| Interest Rate | 10.99% p.a. onwards |
| Processing Fees | 2% + GST |
| Tenure | Contact the Bank |
| Maximum Funding | Approval of Up to Rs. 10 Lakh in a flash |
| Eligibility | 1. Age: 21 – 60years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Salaried/ Self Employed 4. CIBIL Score: 730+ |
| Additional Advantages | a. Borrow amounts starting at ₹5,000 up to your available credit limit b. Repay borrowed funds and withdraw again as needed |
IIFL Home Improvement Loan
IIFL offers home improvement loans to everyone, regardless of job title. If you own a home and meet the eligibility criteria, you can easily apply for an IIFL home improvement loan.
| Highlights | Details |
|---|---|
| Interest Rate | 8.90% p.a. onwards |
| Processing Fees | Contact the Bank |
| Tenure | 25 years |
| Maximum Funding | Up to Rs. 50 Lakh |
| Eligibility | 1. Age: 18 – 75 years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Available to all home owners |
Piramal Finance Home Renovation Loan
Piramal Finance provides home renovation loans featuring quick approvals and attractive interest rates. Benefit from flexible repayment plans and an easy application process to upgrade your living space with ease.
| Highlights | Details |
|---|---|
| Interest Rate | 9.50% p.a. onwards |
| Processing Fees | Up to 5% + GST |
| Tenure | 30 years |
| Maximum Funding | Up to Rs. 5 Crore |
| Eligibility | 1. Age: 21- 60 years 2. Nationality: Indian/ NRIs/ PIOs/ OCIs 3. Employment type: Salaried/ Self Employed |
Tax Benefits of Home Renovation Loans
One of the most attractive advantages of taking a home renovation loan is the tax benefits it offers, helping you save money effectively. Under Section 24 of the Income Tax Act, you can claim up to ₹30,000 in tax deductions annually on the interest paid for your home improvement loan.
Here’s how it works:
- Overall Deduction Limit: The Income Tax Act allows a total deduction of ₹2 lakhs on interest payments for home-related loans. This includes both the purchase of the home and any home renovation loans.
- Specific Deduction for Renovation: Out of the ₹2 lakhs total limit, you can specifically claim up to ₹30,000 for interest paid on home improvement loans.
Suggested Read: Old Regime vs. New Regime for Home Buyers
Conclusion
Planning to renovate your home? Choosing Credit Dharma for your home related loans simplifies the whole process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
Personal loans are typically unsecured, meaning they don’t require collateral. They provide a lump sum that is repaid in fixed monthly installments over a set period, with interest rates based on creditworthiness.
Both salaried and self-employed individuals are eligible to apply. The applicant must be the owner of the property or have a valid agreement for the renovation of a rented property. Additionally, a stable income source and good credit score are essential.
A home loan is taken to purchase or construct a new property, whereas a home improvement loan is specifically meant for repairing, upgrading, or renovating an existing property.
Repayment tenure for these loans typically ranges from 1 year to 15 years, depending on the loan amount and the borrower’s eligibility. Longer tenures may result in lower EMIs but higher interest costs.
Yes, under Section 24(b) of the Income Tax Act, the interest paid on a home improvement loan is tax-deductible up to ₹30,000 annually. This is within the overall deduction limit of ₹2 lakh for interest on home loans.
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