5 Best Home Renovation Loans in India 2026

Buying a residential property does not always entail buying a plot, a newly constructed apartment, or an under-construction property. Many times, you opt for an already constructed home needing renovation, as you get such property often at great discounts.

You can finance the purchase with the help of any of the popular Home Loan products, such as SBI Home Loan. However, the chances are high that the property is not as per your requirements or needs some urgent repair and maintenance. Herein, you can avail a Home Renovation Loan for sprucing up the interior and exterior as per your standards.

About Home Renovation Loan

Every residential property suffers from normal wear and tear due to weather and time-related factors. To maintain the quality and aesthetics of the property, you must undertake periodic maintenance and repair work such as painting, remodelling, woodwork, etc. Due to the rising cost of materials and labour, undertaking a home renovation project has become a costly affair. Paying for these expenses after taking care of the margin money for the Home Loan might put pressure on your finances. In such a situation, a home renovation loan can help you out.

Home improvement loans are secured loans that are offered by financial institutions to take care of the expenses related to renovation, remodelling, and upgradation of a residential property. To avail this loan, you must mortgage your residential property with the lender. As it is a secured loan, the interest rates applicable are lower than those of unsecured loans such as Personal Loans, making home renovation loans a better option to pay for the renovation-related expenses.

The following are some of the key features of a Home Renovation Loan:

1. There is no upper limit on the amounts that can be availed as a Home Renovation Loan.
2. The maximum repayment tenor is 30 years. It varies as per the lender’s policy.
3. If you already have a Home Loan, then you must apply with your existing lender only and ask for an extension on the existing mortgage.
4. Interest rates for Home Renovation Loans start from 7.15% per annum.
5. To apply for a Home Improvement Loan, you must be more than 24 years old but less than 60 years old.
6. Your CIBIL score must be 750+ with a good repayment history for existing loans.
7. It is imperative to submit an approved plan for the renovation process. The loan will be disbursed in stages as the renovation progresses.
8. Interest payment on Home Renovation Loan is eligible for a tax deduction of up to Rs. 30,000/- under Sec 24(B) of the Income Tax Act.
9. Generally, the maximum LTV ratio for a Home Renovation Loan Is 90%. It can be increased or decreased based on the case.
10. It is essential to carry out the technical verification of the property by an approved technical agency to avail a Home Renovation Loan.

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Best Home Improvement Loans in India

To better meet the requirements of the customers, financial institutions are offering new and improved loan products every year.

Here is the handy list of the best home improvement loans in 2026:

1. PNB Housing Home Renovation Loan:

PNB Housing offers home renovation loans up to 90% of the market value of the property with interest rates starting from 7.50% per annum for salaried applicants and professionals. For businessmen, the interest rates start from 7.50%. There is no upper limit on the amount available as a Home Renovation Loan. The maximum repayment tenor available is 30 years, and you have to mortgage the property to avail this facility.

2. Bank of Baroda Home Renovation Loan:

Bank of Baroda offers Home Renovation Loans up to Rs. 1 Crore in semi-urban centres, Rs. 5 Crore in metropolitan cities and Rs. 10 Crore in Mumbai. Bank of Baroda also offers a 36-month moratorium period on these loans with the maximum repayment tenor being 30 years, including the moratorium period. Interest rates applicable are linked to MCLR, and there are no foreclosure charges levied by the bank.

3. Bajaj Finserv Home Renovation Loan:

Bajaj Finserv offers Home Renovation Loans up to Rs. 25 Lakh to its customers in the form of Personal Loans. The maximum repayment tenor available is 60 months. As it is an unsecured loan, the applications are processed in a few working days and require only minimal documentation. Interest rate starts from 7.15% - 20.00% per annum onwards with the processing fees being 0.50% of the loan amount.

4. HDFC Bank Home Renovation Loan:

HDFC offers Home Renovation Loans to its customers at the same rates as Home Loan Interest Rates, i.e., 7.75% to 13.20% onwards for women applicants and 7.75% to 13.20% onwards for other applicants. The maximum LTV ratio allowed by HDFC is 90% for properties up to a value of Rs. 30 Lakh, 80% for up to Rs. 75 Lakh, and 75% of the value of Rs. 75 Lakh or more. The maximum repayment tenor available is 15 years.

5. Kotak Mahindra Bank Home Renovation Loan:

Kotak Mahindra Bank offers home renovation loans to its customers with a maximum repayment tenor of 15 years. The amount available depends on the value of the property, and the LTV ratio can go up to 90% of the value of the property. Interest rates are directly linked to the MCLR.

With multiple options available in the market, you need not worry about the maintenance and repair costs of your residential property.