Your home occasionally need an update. Repairs & renovation pf  flooring, windows, bathroom fixtures, kitchen, or new coat of paint, or even structural fixes. The costs of these modifications are frequently high.

That’s where a personal home renovation loan is useful. It is flexible and non-secured loan that is meant to enable you to renovate or make repairs without emptying your savings. With the help of the right lender and repayment plan; you can update your home and maintain healthy finances.

This guide covers all you need to know, what these loans offer, who is eligible to avail them, how much can you take, who are the eligibility criteria, what are the corresponding interest rates and who are the best lenders for 2026. Let’s get started.

1. What is Home Renovation Personal Loan?

A home renovation personal loan is basically a regular personal loan — but the intention of the loan is renovation or repair of your home. You borrow a lump sum amount, and pay for it in a fixed amount of EMIs. Because it’s not secured, that means no collateral (i.e. property, gold).

Why it’s popular:

• You don’t even have to pledge your house.
• Loan Amount is disbursed Fast
• Flexibility in use — you can renovate, re-model, repair structural damage, install interiors, buy furniture/appliances, etc.
• EMIs are predictable, allowing you to plan finances better.
• It has the advantage of not taking on life savings or emergency funds.

Whether you live in a rented home or own the place, renovation or upgrade loans can work for both (as long as you prove you own or legally occupy the property).

2. Key Features of Home Renovation Loans

You can expect the following in case you choose home renovation loan:

Unsecured Loan – No Collateral 

No need to mortgage your house and pledge gold.

Flexible Loan Amounts

• From little amounts (₹50,000 – ₹1 lakh) for little repairs or paints
• To bigger amounts (₹5 lakh – ₹15-20 lakh) for major renovations, modular kitchens or upgrading the structure

Variable Tenures

Usually between 1 year to 5 year depending on your lender and your ability to repay.

Fixed or Floating Rates of Interest

Based on your profile and norm of the lender.

Option for Prepayment or Foreclosure

Many lenders, once loans are repaid online, will allow full or partial prepayment to reduce interest costs.

Timely Processing (And in particular through NBFCs or Digital Lenders)

With digital KYC along with minimal paperwork, disbursal can take place in couple of hours to days.

3. Who Can Qualify for a Home Renovation Loan?

Because renovation loans are simply personal loans for home use purposes, eligibility criteria are comparable to standard personal loans. The general qualifications for this are:

Salaried Individuals

• Age around 21 – 60 years
• Steady salary, preferably credited to a bank account
• CIBIL / credit history in good shape
• Minimal existing EMI burden

Self-Employed/ Business Owners

• Regular income as shown in bank statements / ITR
• Business running for 2-3 years (some lenders accept lesser tenure)
• Proof of existence of business (GST, MSME, Shop licence etc.)

Homeowners/ Legal Occupants

You may not always need property papers — but you need to demonstrate that you own or legally occupy / lease the home. Some lenders may demand for house papers particularly for higher amounts.

Good Credit Behaviour

Timely EMIs, low credit card utilisation, no recent defaults — helps get lower interest and higher amount.

4. How Much Can You Borrow to Renovate Your Home (Based on Profile)?

The loan amount depends on:

• Salary / income
• Existing EMIs / debts
• Credit score
• Value of home (in case of larger loans)
• Loan tenure

The crude eligibility measure is as follows:

Borrower Profile	Approx. Loan Range (for renovation)
Entry-level salary (₹20–30 k/month)	₹1–3 lakh – for minor works / painting / flooring
Mid-level salary (₹40–60 k/month)	₹3–7 lakh – for kitchen, flooring, bathroom renovation
High salary or dual-income / Self-employed	₹7–15 lakh — for full renovation, modular interior, structural repair
Good credit + stable income	₹10–20 lakh — major upgrades, extensions, high-end interiors

Use a EMI calculator ( or CreditMitra) to check the burden of EMI in a month &  make sure that EMI less than 40-45% of your monthly income + existing EMIs.

5. Interest Rates, Fees & General Costs (2026)

As renovation loans are merely a form of personal loan, the costs are same to standard unsecured loans. Approximate costs:

• Interest Rate: Varies based credit profile & lender apporximately 11% – 24% p.a.

• Processing Fee: 1% – 3% of loan amount (some NBFC may waive/offers low fee)
• Prepayment Fee (when exists): varies with each lender Read terms with care.
• Processing Time: Same day (for pre-approved/salaried) to 3 – 5 working days

Porter: Never subtract processing fee and effective interest rate as they are added together to provide true cost.

6. Documents Needed for a home Renovation Loan

Since this is basically a personal loan, there is standard documentation:

For Salaried Individuals

• Identity Proof : Aadhaar,  PAN, Voter ID or Passport
• Address Proof: Aadhaar, Utility Bill, Passport or Driving Licence)
• Salary Slips last 3-6 months
• Bank Statement last 3-6 months, including receipt of salary
• Employment Proof: ID card / appointment letter /HR letter, if required 

For Self-Employed /Business Owners

• Identity + Address proof
• PAN
• Bank Statement (6-12 months)
• ITR (last 1-2 years)
• Business Proof (GST / MSME/ Shop license / business registration)

Other optional (when taking larger loans or with some lenders):

• Proving of ownership of property or Occupancy proof
• Quotation/Invoice for renovation (quotation if loan amount is high)
• Additional KYC if required

7. Best Banks & NBFCs to Give Home Renovation Loan (2026 Picks)

Here are some of the reputed lenders in India that offer personal/renovation loans at reasonable terms — particularly to the salaried and self-employed applicants:

Lender Type	Why They’re Good for Renovation Loans
Large Private Banks	Competitive interest rates, large loan amounts, structured EMIs
Public Sector Banks	Reliable, lower processing fees, good for modest loans
Top NBFCs	Flexible eligibility, quick approvals, minimal documentation. ideal for self-employed / small-budget renovations
Digital NBFC & Fintech Apps	Instantly pre-approved loans, minimal paperwork — good for urgent renovation needs and smaller amounts

Tip: In case if you need small to mid-size renovation loan (₹1-7 lakh) it is often faster to receive funds from NBFC or Fintech lenders. For larger sums with low interest are better bank.

8. How to Apply for a Renovation Loan

• Project estimation of renovation- cost of material, labor, contingency
• Borrowing amount – See how much you need to borrow, add 5-10% contingency amount.
• Check your eligibility –  Salary/income Existing EMIs Credit history
• Compare loan offers – interest, tenure, charges.
• Upload documents (KYC + Income proof / Business proof)
• Choose loan amount & tenure which ensures EMI is within comfort zone
• Receive sanction, e-signing documents (if digital lender)
• Get disbursal – usually within 1-3 days (or same day in case of pre-approved),
• Start renovation and save bills/receipts for record
• PayEMIs on time – helps build credit history

9. Pros & Cons of Taking the Renovation Loan

 Pros

• Quick access to funds without having to dip into the savings
• Easy repayment through EMIs is more manageable.
• No collateral needed
• Helps improve a home’s value/comfort instantly
• Good opportunity to establish credit if it is repaid responsibly

Cons

• Interest adds to the total cost, and renovation becomes more costly.
• Over-borrowing risk,  temptation of overspending on unnecessary things.
• EMI burden may be stressing the monthly budget if income is not stable
• Some lenders may charge high rates / fees for marginal credit profile

10. Tips to Secure the Best Renovation Loan

• Borrow only what you need — don’t buy wish list items, extended from the essential ones
• Keep EMI less than 40% of net income will keep you financially stable
• Compare interest plus processing charges and select the lowest effective charge
• Select a comfortable tenure, avoid long terms that increases interest amount.
• Use lenders who have clear terms of use, do not use hidden fees.
• Maintain your good CIBIL / credit history — To gain better (cheaper) rates and better terms
• Keep all bills & receipts – helpful for record keeping or future home sale

Final Thoughts

Your house should be a comfortable and safe place to be in– and the work of renovating it does not need to cause financial strain. With a home renovation personal loan, you get the freedom to learn to upgrade or repair now and pay little by little.

Whether you are salaried or self-employed, working in a small town or metro — there are lenders who are ready to offer you the loan you need. The key is to pick and choose, borrow responsibly and give that money back in a timely manner.

With CreditMitra get your loan disbursed fast and all by being transparent and easy.

Finances are the first step to your home makeover. Happy renovating!