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  • Home Improvement Loans

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  • 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.

    Home Renovation Loans for Salaried and Self-Employed Professionals

    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 between 8 and 9%. The tenure of a home renovation loan is usually 15 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. Following are the eligibility criteria and documents required for different borrowers:

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    Home Renovation Loan Eligibility Criteria and Documents Required for Salaried Professionals

    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:

    • Proof of Identity: Valid passport / Voter ID card / Aadhaar card / valid driving license
    • Proof of Income: Salary slips for the past three months, bank statements displaying salary credits for the past six months, latest IT returns and Form-16
    • Other Documents: Proof of own contribution, appointment letter if the employee has been working with the current company for less than one year or employment contract, bank statements for the past six months to show repayment of ongoing loans, if any, and passport size photographs
    • Home / Property Documents: Original property title deeds, proof of no encumbrances on the property, estimate of proposed work from a civil engineer or an architect.

    Eligibility Criteria and Documents Required for Self-Employed Professionals

    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:

    • Proof of Identity: Valid passport / valid driving license / Aadhaar Card / Voter ID Card
    • Proof of Income: IT returns and computation of income for the past three assessment years, the profit and loss account statements and balance sheet along with schedules/annexures for the past three years, and savings account statements of the customer and current account statements of the business for the past six months
    • Other Documents: Business profile along with the latest Form 26 AS, the company‚Äôs articles and memorandum of association, list of shareholders and directors along with their individual shareholding certificate by a company secretary or chartered account in case the business entity is a company, partnership deed if the entity is a partnership firm, passport size photographs, particulars of current loans of the customer as well as the business such as installments, outstanding amount, purpose, security, balance loan term, etc.
    • Home / Property Documents: Original title deeds, proof of no encumbrances on the property, estimate of the proposed work from a civil engineer or an architect

    Home Improvement Loans Interest Rates

    The interest rates for home improvement loans offered by most banks range between 8 and 9% for both self-employed professionals as well as salaried customers. Interest rates can either be fixed or floating. While the rate will remain the same for the entire tenure of a fixed rate loan, it can change from time to time in case of loans with a floating interest rate.

    Features and Benefits of Home Improvement Loans

    Following are the features and benefits of home improvement loans:

    • The tenure of the loan is 15 years in most cases, but can vary based on the policies of the lender.
    • The loan can be availed for renovation work in your house, whether it is the installation of bathroom and kitchen fittings or even home extension.
    • Around 90% of the estimated cost for the proposed work can be availed through the loan.
    • Customers can choose between fixed and floating interest rate loans.
    • Simple and hassle free documentation process.
    • Available to both salaried customers as well as self-employed professionals who are above 21 years of age.
    • Simple repayment process via monthly installment system.

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    Home Loan Reviews

    • HDFC Limited Home Loan
      "Prime minister scheme need to be implement in shorter period"
      0.5 5.0/5 "Blown Away!"
      I taken the HDFC housing loan with the good customer support . But Prime minister scheme need to be implemented in shorter period of time . So that It will reduce the burden for the customer .That amount can be used for purchasing of new furniture , Home renovation and some house hold items .
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 27, 2019
    • HDFC Limited
      HDFC Limited Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      In the recent past, I had applied for my Home loan with HDFC LTD through online. I am dis-satisfied with HDFC ltd interms of principal amount and offer. However I got the best offer from Bajaj , I had taken a home improvement from Bajaj , they gave a good principal amount with a very low Interest rate. On the other hand, I would say that they had completed the home loan process within a span of 15 days of time.
      Was this review helpful? 3
      , pune
      Reviewed on Feb 16, 2017
    • ICICI Bank Home Loan
      "Amazing "
      0.5 4.0/5 "Great!"
      I did not have to travel much with regards to the documentation process with ICICI Bank for my home loan. It was a one time process, may be only once or twice I missed out on a document and they came over and collected the same. The rate of interest was of 9.4% and the processing charges was normal. They completed the process on time and as required. Simultaneously an add on loan was also taken for the home improvement from the same bank, and they provided a rate of 9.5% on that loan.
      Was this review helpful? 1
      , thane
      Reviewed on Oct 25, 2016
    • ICICI Bank Home Loan
      "prompt..."
      0.5 4.0/5 "Great!"
      Home renovation is going on and for the same I asked for home loan at ICICI bank. I was asked to submit some government related papers where it would take six months for me to make ready so for time being I dropped the plan. Otherwise ICICI bank is good in response and they are prompt.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 22, 2015
    • LIC Housing Home Loan
      "Good customer services"
      0.5 5.0/5 "Blown Away!"
      I am belongs to Orrisa city, So I found LIC HOUSING FINANCE company was providing lesser rate of interest for home loan. They have collected more documents from me. Since I was working in some other place they have required more documents from me. They are also providing loans for home renovation.
      Was this review helpful? 1
      , rewari
      Reviewed on Nov 14, 2015
    • ICICI Bank Home Loan
      "Dont not want to continue "
      0.5 4.0/5 "Great!"
      My existing home loan is with ICICI bank which I am holding it for the last 2.5 years. I felt they have high rate of interest which is 10.25%, so I planned transfer to some other bank. If I want to take top up on it they will increase my rate of interest to 12.25%. I want to get top up loan for my home renovation.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 24, 2015
    • LIC Housing Home Loan
      "Not Bad "
      0.5 5.0/5 "Blown Away!"
      I interested for taking loan for Home renovation. When I checked in the market LIC Housing Finance Limited is the one who processing home loan for house renovation. I have completed four years of tenure period now. It would be great if they have the online payment option to pay the EMIs.
      Was this review helpful? 0
      , jabalpur
      Reviewed on Sep 16, 2015
    • HDFC Limited Home Loan
      "Quite tricky"
      0.5 3.5/5 "Pretty good"
      I didnt face much challenges while applying home loan with HDFC limited. Service was quite good. Every 2 days they called me and asked for the documents . They properly did their follow ups. I really didnt need the loan hence I requested to close . I calculated the interest rates with other banks. The process was quite tricky. After submitting the documents they are still looking for approvals. Actually I have applied for home renovation. The entire process was lengthy . Though I had a good cibil score. They may provide the gateway for existing customers
      Was this review helpful? 1
      , delhi
      Reviewed on Sep 23, 2014
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