Best banks, interest rates, EMI calculator & how to apply online for fast approval
A home renovation loan (also called home improvement loan) is a personal or secured loan taken to renovate, repair, expand, or upgrade your house. It is designed to cover costs like civil repair, flooring, painting, kitchen & bathroom remodelling, electrical & plumbing work, interior fixtures, and small extensions.
Unlike home purchase loans, renovation loans are typically faster to sanction and may be available as unsecured personal loans, home improvement loans (secured against the property), or specialized renovation offers from banks & NBFCs.
Estimate your monthly EMI quickly. Enter desired loan amount, tenure (months) and interest rate (annual).
Below is a quick comparison of lenders commonly used for renovation financing. Rates & fees change — always check the latest from the lender.
| Lender | Product Type | Interest Rate (Indicative) | Processing Fee |
|---|---|---|---|
| State Bank of India | Home Renovation / Personal loan | 9.5% – 13.5% p.a. | 0.5% – 1% |
| HDFC Bank | Home Improvement Loan / Personal loan | 9.8% – 14% p.a. | 0.5% – 1.5% |
| ICICI Bank | Personal / Home Renovation | 10% – 15% p.a. | 1% – 2% |
| Axis Bank | Home Improvement & Personal Loan | 9.9% – 14.5% p.a. | 1% – 1.5% |
| NBFCs (e.g. Bajaj Finserv) | Personal Loan / Consumer Loan | 11% – 24% p.a. | 1% – 3% |
Tip: If you have home equity or existing mortgage, secured renovation loans often offer lower rates than unsecured personal loans.
Pro tip: Having a contractor’s bill of quantities and timeline helps the lender understand fund utilisation and speeds approval.
If you need staged disbursal (pay contractor in phases), request lender to do tranche disbursal linked to work milestones.
Scenario A: ₹2,00,000 renovation, 24 months @ 12% p.a. → EMI approx ₹9,430. (Use calculator above for exact numbers.)
Scenario B: ₹5,00,000 renovation, 48 months @ 11% p.a. → EMI approx ₹13,300.
Scenario C: ₹3,00,000 secured loan (lower rate 9.5%) for 36 months → EMI approx ₹9,60X (varies slightly).
These examples help you plan monthly cashflows and pick a lender accordingly.
Smaller gold loans or some NBFC products may approve with minimal documents, but mainstream bank renovation loans usually require income proof.
No — loan amounts are not taxable as income. However, interest paid is not tax-deductible unless the renovation is for a rental or business property under specific conditions. Consult a tax advisor for your case.
Most lenders allow prepayment; some may charge prepayment penalties. Check terms before signing.
Credit card EMIs are useful for small works but usually carry higher interest/fees. For larger renovation costs, a personal/home renovation loan often is cheaper.
This page provides general information about home renovation loans in India for educational purposes only. Interest rates, processing fees and eligibility criteria change frequently — always check the lender's official website or contact the bank/NBFC directly for current details. This is not financial advice. For personalised guidance, consult a certified financial advisor. All Finance Store is not responsible for decisions made based on this content.