Periodic maintenance is a necessity to increase the aesthetic appeal and the property value of any home. With rising labour and material costs, affording the financial aspects of home renovation might sometimes be beyond the capacity of the homeowner. Many financial platforms have formulated credit lending through home renovation loans designed to assist homeowners. Let’s delve further into the home renovation loans, its benefits and interest rates.

A glance to home renovation loans

Home renovation loans are funds allocated to homeowners for their home improvement needs. These are secured loans and are availed by mortgaging the property. A home renovation loan should be availed when:

  • The applicant owns a property and is ready to pledge it
  • The applicant desires for extended periods of repayment. For example, the repayment tenure at financial platforms such as PNB Housing Finance is 30 years.
  • The desired loan amount is huge
  • Applicants want to utilize the tax benefits defined in the old regime of Income-tax.

Specific financial platforms also offer added discounts when the primary applicant is a woman. Financial platforms such as PNB Housing Finance also offer robust doorstep services with a dedicated relationship manager. Through PAN India branches availing loans are also simplified at PNB Housing Finance.

Loan qualification criteria and documents and documents

The application for a home renovation loan can be an individual or joint application.

The eligibility criteria designed for home improvement loans are similar to housing loans. The qualifying criteria are also dependent on the lender chosen by the applicant.

The general requirements are as tabulated below:


Applicant’s minimum age of the applicant should be 24 years or above. The age at the time of repayment should not exceed 60 years.
Occupation Salaried, self-employed or business professional

The documents required for availing the loan include:

  • A photo ID
  • An Address Proof
  • Passport size photographs
  • Salaried applicants should submit Form 16, ITR of the past two years, a letter from the employer organization, past three months payslip
  • Self-employed and business professionals should submit ITR of last two years attested by a CA, profit and loss statements, sales receipts validated by a CA
  • Property details including title deeds, expected costs of renovation and architectural layout of remodelling attested and approved by a civil engineer or architect to be submitted

Current home renovation loan interest rates in India

The current rates in India for home renovation loans range from 9.60% to 24% across various lenders. Lenders such as PNB Housing finance offer home renovation loan interest rate starting from 9.10 % and 9.30% for salaried and business people respectively.

Final thoughts

Through Home renovation loans, one does not have to exhaust their hard-earned savings towards home modernization. Along with tax benefits, these loans are secure and are available at lower interest rates when compared to unsecured options like personal loans.


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