Home renovation loans are sanctioned by banks to customers who require funds to renovate or refurbish their homes. These loans can be taken to upgrade the design of your home whilst creating a more comfortable space in which to live. Home renovation loans, or home improvement loans as they are also called, can be utilized for flooring, tiling, plastering, painting, etc. The documentation process to avail a home renovation loan is simple and hassle free, and the interest rates associated with these loans is similar to those applicable to home loans.
It helps to compare the Equated Monthly Instalments (EMI) from different bank to choose the loan that is best suited to your income and requirements. Given below is the lowest EMI per lakh for home improvement loans from different banks, based on their current interest rates (effective 2021), and is based on the maximum repayment tenure that is offered by each bank.
|Bank||Home Improvement Loan Interest Rates
|Maximum Tenure||Lowest EMI per lakh|
|Bank of Baroda||6.85% p.a.||30 years||Rs.655|
|Canara Bank||6.90% p.a.||5 years||Rs.1,975|
|DHFL||8.75% p.a.||10 years||Rs.1,253|
|HDFC||6.90% p.a.||15 years||Rs.893|
|ICICI Bank||11.25% p.a.||5 years||Rs.2,187|
|Kotak Mahindra Bank||6.75% p.a.||15 years||Rs.885|
|PNB Housing Finance Ltd.||7.50% p.a.||30 years||Rs.699|
|SBI||6.95% p.a.||30 years||Rs.662|
|Tata Capital||10.99% p.a.||6 years||Rs.1,903|
|Union Bank||6.80% p.a.||15 years||Rs.888|
Home renovation loans can be availed by both salaried employees as well as self-employed professionals. The interest rates for both categories of borrowers usually ranges from 6.75% to 11.25% p.a. The tenure of a home renovation loan ranges from 5 years to 30 years. The age and profile of the customer are also key factors in determining the tenure and interest rate of the loan. The maximum amount of money that can be borrowed through a home renovation loan is around Rs.75 lakhs as offered by most banks.
Customers can apply for home renovation loans either individually or jointly. All owners of a home or property for the renovation of which a loan is availed must be co-applicants, but it is not necessary for all co-applicants to be co-owners. Close family members can be co-applicants of the loan. Following are the documents you will need when applying for a home renovation loan:
Home renovation loans for self-employed customers can be availed by doctors, architects, lawyers, engineers, chartered accountants, company secretaries, consultants, contractors, commission agents, traders, etc. These loans can be availed individually or jointly and the regulations for co-applicants are the same as those for salaried customers. Following are the documents required for self-employed customers:
Following are the features and benefits of home improvement loans:
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