Best Home Renovation Loan for Salaried People in India

The Best Home Improvement Loans for Renovation in India with top interest rates, flexible repayment plans, and eligibility criteria.

Loans For Home Renovation

Are you planning to give your home a makeover? Whether you want to repaint, remodel your kitchen, or do a full renovation, finding the right way to finance your project can be tough. This guide will help you understand the best loan options for home renovation or home improvement, making sure you get the best deals and understand all the important details.

Top 4 Loans for Home Renovation

Axis Bank

Interest Rate : 10.49% onwards

Loan Amount : Min : 50k Max : 25 Lakh

Eligibility for Personal Loan for Renovation : 

Age

• The applicant should be between 21 and 60 years of age.

 Employment

• Salaried Individuals : Should be employed with a government organization or a reputed private company.
• Self-Employed Individuals : Should have a stable business with a regular income.

 Income

• A minimum net monthly income of ₹15,000 is usually required. Higher income requirements may apply for larger loan amounts.

Credit Score

• A good credit score is essential for approval. Axis Bank generally looks for a credit score of 700 or above

   Documents Required

1. Proof of identity (Aadhaar, PAN, Passport, etc.)
2. Proof of residence (Utility bills, Rental agreement, etc.)
3. Proof of income (Salary slips, bank statements, Income Tax Returns)
4. Employment proof (for salaried individuals)
5. Business proof (for self-employed individuals)

      Apply Now with Axis Bank

• Check Out Your Home Improvement Loan EMI and Total Amount to be paid with this Calculator.

2. Induslnd Bank 

Interest Rate : 10.49% onwards

Loan Amount : Min : 30k Max : 50 Lakh

Eligibility for Personal Loan for Renovation : 

Salaried Employees : 

1. Minimum age to apply for personal loan should be 21 years.
2. Maximum age at personal loan maturity should be 60 years or retirement age whichever is earlier.
3. Minimum net monthly income should be Rs.25000 for personal loan online application.
4. Should have completed minimum 2 years in employment and minimum 1 year in the current organization.
5. Should have completed  minimum 1 year of stay at the current residence, if rented.

Self Employed Individuals 

1. Minimum age to apply for personal loan should be 25 years
2. Maximum age at loan maturity should be 65 years
3. Minimum annual net income post tax should be Rs.4.8 lakh
4. Should have 5 years of post qualification experience

 Documents Required  Salaried Employees / Self Employed Individuals 

1. Application :   Application form with photograph
2. Proof of Identity :  Self-attested photocopy of any one of the following:

• Driving license
• Passport
• Voters ID
• Aadhaar
• PAN

1. KYC: Valid identity/Residence/Signature proof
2. Income proof :  Form 16/ITR for last 3 years
3. Latest 3 months salary slip
4. Banking :  Latest 3 months’ Salary Credit Bank Statement.

 Self Employed Individuals 

1. Application :   Application form with photograph
2. Proof of Identity :    Self-attested photocopy of any one of the following:

• Driving license
• Passport
• Voters ID
• Aadhaar
•  PAN

1. KYC: Valid identity/Residence/Signature proof
2. Income proof :  Form 16/ITR for last 3 years
3. Latest 3 months salary slip
4. Banking : Latest 6 months Business Current Account and latest 3 months’ Primary Savings Bank Statement.

Apply Now With Induslnd Bank

• Check Out Your Home Improvement Loan EMI and Total Amount to be paid with this Calculator

3. IDFC First Bank

Interest Rate : 10.99% onwards

Loan Amount : Min : 1 lakh Max : 40 Lakh

Eligibility for Personal Loan for Renovation : 

1. Age :  Applicants should typically be between 23 to 60 years old.
2. Income :  A stable and sufficient income is required to qualify for the loan.
3. Employment :  Both salaried and self-employed individuals can apply.
4. Credit Score : A good credit score improves your chances of approval and may lead to better interest rates.

 Documents Required

1. Identity Proof :  Aadhaar card, PAN card, passport, voter ID, or driving license.
2. Address Proof :  Aadhaar card, passport, utility bills, or rent agreement.
3. Income Proof : Salary slips for salaried individuals, and income tax returns for self-employed individuals.
4. Bank Statements : Typically for the last 3 to 6 months.

Apply Now With IDFC First Bank

• Check Out Your Home Improvement Loan EMI and Total Amount to be paid with this Calculator

4. HDFC Bank

Interest Rate : 10.50% onwards

Loan Amount : Min : 1 lakh Max : 40 Lakh

Eligibility for Personal Loan for Renovation : 

1. Salaried employees at select private limited companies and public sector undertakings (including central, state and local bodies)
2. Must be between 21 years and 60 years of age
3. Must have had a job for at least 2 years, with a minimum of 1 year with the current employer
4. For self-employed: Applicants must have a specified minimum income (may vary with location). Financial documents to show stability of income may also be required by the bank.
5. For an HDFC Bank Salary Account holder: must have a minimum net monthly income of Rs 25,000.
6. For a non-HDFC Bank Salary Account holder: must have a minimum net monthly income of Rs 50,000

  Documents Required 

1. Identity proof (copy of passport/voter ID card/driving license/Aadhaar)
2. Address proof (copy of passport/voter ID card/driving license/Aadhaar)
3. Bank statement for the previous 3 months (Passbook for previous 6 months)
4. Two latest salary slips/current dated salary certificate with the latest Form 16
5. Proof of end use

        Apply Now with HDFC Bank

• Check Out Your Home Improvement Loan EMI and Total Amount to be paid with this Calculator

5. Kotak Mahindra Bank

Interest Rate :   8.70%  onwards

Loan Amount : 

1. Avail of home repair loans up to 90 % of your requirement.
2. 80 % home renovation loan for amounts from 35 lakhs to 70 lakhs
3. 75 % home renovation loan for amounts above 75 lakhs

Eligibility for Personal Loan for Renovation : 

1. Age: minimum 21 years
2. Monthly/annual income
3. Income source
4. Job stability
5. A good credit score
6. Existing savings
7. Number of dependents
8. Educational qualification

Documents Required 

1. Valid identity proof
2. Valid income proof
3. Bank statements for the last 3 months
4. Salary slips for the last 3 months
5. Income tax returns
6. Proof of educational qualifications

       Apply Now With Kotak Mahindra Bank

• Check Out Your Home Improvement Loan EMI and Total Amount to be paid with this Calculator

Why Choose a Personal Loan for Home Renovation?

• Flexibility: Personal loans offer flexibility in terms of usage. You can use the funds for any renovation project.
• Quick Disbursal: These loans are often dispersed quickly, allowing you to start your renovation project without delay.
• No Collateral Required: Since these loans are unsecured, you don’t need to put your property at risk.

Personal Loan for Home Renovation Tax Benefits

One big advantage of taking a personal loan for home renovation is that you might get tax benefits. According to Section 24 of the Income Tax Act, you can get a deduction on the interest you pay on the loan. But, this benefit is only available if you use the loan specifically for home improvements.

FAQs

Q: What are the repayment options for a personal loan for home renovation? 

A: Repayment options typically range from 1 to 5 years. Choose a tenure that aligns with your financial situation.

Q: How much money can I borrow with a home renovation loan? 

A: The loan amount offered ranges from ₹30,000 to ₹5 lakh.

Q: Do I need collateral to apply for a home renovation loan? 

A: No, IndusInd Bank Personal Loan for home renovation requires no guarantee or collateral.

Q: How can I apply for a personal loan for home renovation expenses online? 

A: Applying for IndusInd Bank Instant Personal Loan is a simple 4-step process:

Q: How can I apply for a personal loan for home renovation expenses online?

 A: Applying for IndusInd Bank Instant Personal Loan is a simple 4-step process:

1. Click on the ‘Apply Now’ button.
2. Provide your personal details and loan requirements.
3. Get the best loan offer as per your need.
4. Complete Video KYC verification and digitally sign to validate & get instant disbursal.

Q: Can I get tax benefits on a personal loan for home renovation? 

A: Yes, you can claim deductions on the interest paid under Section 24 of the Income Tax Act if the loan is used for home improvement.

Get a Personal Loan that fits your needs. Apply for loans from Rs 1000 to Rs 15 Lakhs with competitive rates.  

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Author- Ayush Naik  

Ayush Naik is an expert in personal finance with an MBA in Finance. With over five years of experience working alongside stock market traders, Ayush has a deep understanding of market dynamics and investment strategies. His practical insights and analytical skills have helped many individuals navigate the complexities of financial planning and investment. Ayush’s professional background and commitment to educating others make him a valuable contributor to our personal finance blog.