Personal Loan for Home Renovation

Why Personal Loan for Home Renovation

Personal loans are a convenient option for quick funding of home renovation projects. It’s a simple way to access quick funds for upgrades, repairs, or even complete makeovers – without needing to mortgage your property.

Key Features

• Interest Rates: Start from 10.50% p.a. Some PSU banks may offer lower rates for eligible borrowers.
• Loan Tenure: Up to 5 years, with some lenders offering longer repayment periods
• Loan Amount: Usually up to Rs 5 lakh
• Quick Processing & Disbursal:
  • Processing time: Usually 2–7 working days
  • Many banks offer end-to-end digital processing of personal loan applications
• No Collateral Required: These are unsecured loans

Fund Your Home Makeover with Best Personal Loan Offers on Paisabazaar

At Paisabazaar, Personal Loans for Home Renovation are offered by top banks and NBFCs, including Axis Bank, Bajaj Finserv, SMFG India Credit, HDFC Bank, IndusInd Bank, YES Bank and Tata Capital.

Benefits of Taking a Home Renovation Loan via Paisabazaar

• Loan offers from across top lenders, i.e., HDFC Bank, Axis Bank, IndusInd Bank and more
• Know Your Chances of Approval
• 100% Digital Process
• 30+ Lending Partners
• Pre-approved Offers with Instant Disbursals
• Expert Assistance

Unlock Pre-Approved Personal Loans for Home Renovation!

Many banks and NBFCs offer pre-approved personal loans to existing customers with a strong credit profile. These pre-approved personal loans are disbursed within a few minutes or hours of making a loan application. This saves time when you don’t want delays in starting your home renovation project.

Highlights:

• Instant Disbursal: Within minutes or hours of application
• Minimal Documentation: Often pre-verified using your existing bank records
• Digital Process: In most cases, apply via mobile app or net banking

Pre-approved Loan Partners on Paisabazaar

At Paisabazaar, we have pre-approved loans from Axis Bank, Hero Fincorp, Aditya Birla Capital, IndusInd Bank, Moneyview, etc.

Personal Loan for Home Renovation vs Home Loan

Here’s a side-by-side comparison of a personal loan for home renovation and a home loan:-

Which one is right for you

• If you need funds quickly and your home renovation project is smaller or moderate, a personal loan is a better choice.
• On the other hand, if you’re planning a major renovation and need higher loan amounts with lower interest rates, a home loan for renovation can be the best fit.

Already Have a Home Loan? Consider a Top-up for Renovation

If you have a home loan and need additional funds for your home renovation or improvement, a top-up home loan can be a cost-effective option. Home loan top-up are offered over and above your existing home loan, with lower interest rates than personal loans and no additional collateral required. This also saves time from going through a fresh loan application process.

Check below the comparison of top-up home loan rates with personal loan interest rates:-

Final Word: What Fits Your Home Renovation Plan

A personal loan for home renovation is a smart choice when you need quick funds for small to mid-sized projects like upgrading your kitchen, installing modular furniture, or repainting your home – without lengthy paperwork or collateral.

But if you’re already repaying a home loan or planning a large-scale renovation, consider home loan top-ups or home renovation loans for lower interest rates and longer repayment flexibility. However, the interest rates depend on the credit profile of the applicant and the lender’s policies.

Before You Apply:

• Compare loan offers across banks and NBFCs. You can use Paisabzaar to check your loan eligibility and choose the offer that suits your financial needs.
• Choose an optimum repayment tenure based on your repayment capacity
• Check for charges like processing fees or prepayment penalties
• Check for pre-approved offers for instant access to funds

FAQs Home Renovation Loan

What is the interest rate for a home renovation loan?

The interest rates for a personal loan for home renovation usually start from 10.50% p.a., depending on the lender’s risk based pricing models and the applicant’s credit profile.

How is a home renovation loan different from a personal loan?

A home renovation loan is secured and offers lower interest rates and longer tenures. A personal loan is unsecured, usually has higher interest rates, but is quicker to get and has no end-use restriction.

How fast can I get the loan disbursed?

A personal loan for home renovation is usually disbursed within 2 to 7 working days, or even instantly if the loan is pre-approved. On the other hand, a Home Renovation Loan may take around 1 to 2 weeks for approval, as it involves additional property-related checks and verifications.

What happens if I default on my home renovation loan EMI?

Missing EMIs on your home renovation loan can lead to penalty charges, bounce charges, impact your credit score, and in case of secured loans, may eventually result in repossession of the mortgaged property.

Is there a penalty on foreclosure or prepayment?

Lenders usually charge 1% to 5% of the outstanding loan amount on prepayment and foreclosure of the fixed interest rate personal loan. Note that the RBI has barred all lenders from charging any fees on prepayment of personal loans availed at floating interest rates.

Can I apply jointly with my spouse or parent?

Having a co-applicant with a strong credit profile can increase your loan eligibility and may also get loan at lower interest rates.