Home Renovation Loan

Are you planning to upgrade your home?

A home renovation loan can give you the exact financial support you need to turn your ideas into reality. Whether you dream of a modern kitchen, a cozy living space, or extra room, this loan is designed to make your home improvement plans achievable. Explore all the details including the rates and charges, eligibility, best lenders, EMI calculation and features and the benefits of a home renovation loan.

Apply for a home improvement loan via Buddy Loan and enjoy fastest approval.

Highlights of Home Renovation Loan

Before, we get into the details, let’s glance through the highlights of home renovation loan:

Loan Amount ₹10,000 - ₹15 Lakhs
Interest Rate Starting at 11.99%
Tenure 6 - 60 months
Monthly Income Minimum ₹15,000
Credit Score 700 & Above (As per Lender)

Home Renovation Loan Interest Rates, Fees & Charges

The interest rate for home renovation loans via Buddy Loan typically starts from 11.99% per year. The rates can change based on your credit history and income, among other things.

Besides interest rate there are also certain fees and charges involved, like processing fees and prepayment charges. Check the table below for a simple breakdown of these costs.

Interest Rate Starting fromm 11.99% p.a.
Processing Fee 0.5% - 4% of the loan amount
(Depend on Lender)
Pre-closure charges Depends on Lender
Note- The rates mentioned are subject to change. Do visit the website for more information.

Home Renovation Loan Eligibility

In order to have your home renovation loan application approved, it is essential to satisfy specific eligibility criteria, including factors such as age and income. Although these criteria may differ from one lender to another, the table below highlights the typical home renovation loan eligibility requirements:

Age: Typically falls within the range of 21 to 60 years.

Impact on Credit Score: Applicant must be an Indian citizen.

Employment: Individuals may be salaried, self-employed, or engaged in a professional capacity.

Minimum Salary: The required monthly income varies among lenders, commonly ranging from ₹15,000 to ₹30,000.

Credit Score: Lenders generally expect a minimum CIBIL score of 750, though certain situations may allow for acceptance of lower scores.

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Documents Required For Home Improvement Loan

To secure approval for your Home Repair Loan, you must provide a set of crucial documents for verification. To apply for this loan, you will need the following documents:

Proof of Identity PAN card, Aadhaar card, Driver's licence, along with a selfie.
Proof of Income 3 months salary slips, 6 months bank statement, ITR or form 16.
Proof of Address Aadhaar card, Passport, Voter ID, etc.
Renovation Estimates Renovation estimation quote by registered architect.
Additional Documents Property documents, and loan application form (if needed).

Home Renovation Loan EMI Calculation

Before securing a loan, start by determining your monthly payment to ensure it aligns with your budget. Utilize our EMI calculator by entering the loan amount, interest rate, and loan term for a swift estimate of your monthly payments for the home improvement loan. It provides a quick and accurate result to help you plan your payments comfortably.

Monthly EMI 86
Principal Amount 1,000
Total Interest 32
Total Amount 1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

Here is a mathematical formula for calculating your EMI:

EMI=P * r * (1 + r)n/(1 + r)n-1

In this equation:

‘r’ stands for the interest rate.

‘P’ stands for the principal amount.

‘n’ represents the loan repayment period.

Substitute these variables with their respective values to calculate your EMI.

Top 10 Home Improvement Loan Providers in India

In a crowded market of lenders, including banks and Non-Banking Financial Companies (NBFCs), it is important to compare and assess before applying for a home renovation loan.

Below is a concise table comparing top lenders to help you choose the best lender for your home improvement loan or to get a personal loan for home renovation / improvement.

Banks & NBFCs Interest Rates (p.a) Processing Fee
SBI 8.40% onwards 1% of loan amount + tax
Bank of Baroda 8.40% onwards Up to 0.50% of the loan amount
HDFC Bank 10.50% onwards Up to 0.50% of the loan amount
PNB 8.45% onwards Refer to bank

Read More

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Note- The interest rates mentioned are subject to change. Do visit the website for more information.

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Features & Benefits of Home Renovation Loan

Check the attractive features and benefits that make a home renovation loan a convenient way to update your home.

Fast Approval

Get loan approved as
quick as 24 hours

Affordable Interest Rates

The interest rate
start at 11.99% p.a.

Flexible Loan Tenure

Tenure that ranges from
6-60 months

Customized Loan

A loan tailored to your
home improvement needs

Simple Documentation

Online application process
to save time

No Hidden Charges

No extra hidden
charges or fees

Tips & Tricks To Save Money on Your Home Renovation Loan

Before you start your home renovation loan journey, here are some tips and tricks to save money and make the best out of your home improvement project.

Budget Planning: Develop a comprehensive budget plan to avoid unnecessary expenses and ensure your renovation stays within financial bounds.

DIY Approaches: Consider incorporating do-it-yourself (DIY) elements to save on labor costs, provided you have the necessary skills.

Bulk Purchases: Opt for bulk purchases of materials and fixtures to leverage discounts and lower overall costs.

Comparative Shopping: Explore multiple suppliers and contractors to get the best deals on materials and services.

Steps To Apply for Home Renovation Loan

Follow these steps to apply for a home renovation loan with Buddy Loan:

Step 1: - Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).

Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.

Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option

Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).

Step 5: Enter your work details (Including company name, years of service and Designation)

Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)

Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

Why wait any further?

Best Practices & Common Mistakes of Home Improvement Loan

By following these best practices and avoiding common mistakes, you can navigate the process of obtaining a home improvement loan more effectively and with better financial outcomes.

Best Practices for a Home Improvement Loan

Thorough Research: Conduct extensive research on lenders, interest rates, and loan terms before committing to a home improvement loan.

Detailed Project Plan: Have a detailed renovation plan in place, including cost estimates and timelines, to avoid unforeseen complications.

Emergency Fund: Maintain an emergency fund to address unexpected expenses that may arise during the renovation process.

Avoiding Over-Borrowing: Resist the temptation to borrow more than necessary; assess your needs realistically to prevent overextending financially.

Regular Communication: Maintain open communication with contractors to stay informed about the progress and address issues promptly.

Common Mistakes While Taking Home Improvement Loan

Here are the common mistakes to steer clear of while considering a home renovation loan:

Borrowing Without a Plan: Taking a loan without a clear renovation plan may lead to overspending and repayment challenges.

Detailed Project Plan: Overlooking the impact of interest rates can significantly raise the total loan cost.

Neglecting Hidden Costs: Forgetting hidden renovation expenses may strain your budget and ability to repay.

Overlooking Loan Terms: Ignoring or not understanding loan terms may result in unfavorable repayment conditions and financial stress.

Skipping Eligibility Check: Not checking eligibility before applying may lead to rejection.

Not Reading the Fine Print: Not thoroughly reviewing the loan agreement may result in missing crucial details that impact repayment.

Relying Solely on Loans: Depending solely on loans without exploring other funding sources can lead to long-term financial strain.

Home Renovation Loan Vs Personal Loan

While you can also opt for a personal loan for home improvement projects, it's essential to conduct a thorough comparison between a home renovation loan and a personal loan to determine which is best suited for your needs.

Borrowing Without a Plan: Purpose: While a personal loan offers versatility, catering to various financial needs, home renovation loan is tailored for specific home improvement projects.

Interest Rates: A home renovation loan typically offers lower interest rates as it is secured against the property, while a Personal Loan tends to have higher rates since it is unsecured.

Loan Amount: For a Home Renovation Loan, it depends on property value and renovation costs. In contrast, a Personal Loan is determined by creditworthiness and income.

Repayment Tenure: A Home Renovation Loan usually comes with a longer tenure, often aligned with the property loan, while a Personal Loan typically has a shorter tenure, ranging from 1 to 5 years.

Eligibility: Both a Home Renovation Loan and a Personal Loan have eligibility criteria. The former requires property ownership and a stable income, while the latter depends on credit score, income, and overall financial stability.

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Frequently Asked Questions

A home renovation loan is a type of financial product designed to help homeowners fund the remodelling or improvement of their existing homes.

While it's an option, using a specific home renovation loan is generally preferable, as it often offers lower interest rates and is tailored for such projects.

The tenure of a home improvement loan typically ranges from a few months to several years, depending on the lender and the amount borrowed.

Yes, in many cases, you can use a home renovation loan to purchase furniture as part of the overall improvement project, but it's essential to check the terms and conditions of the loan.

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