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Renovate Your House With a Home Renovation Loan

by anshimishra
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A house is more than just a roof. It is a symbol of pride, which shows the status and achievement of the homeowner. The condition of a house strikes a remarkable first impression whenever guests come to your house. 

You can opt for a home renovation loan from PNB Housing to refurbish, modify, or renovate the house to make it as good as new. The primary benefit of this loan type is that one can easily enhance their current house with a better design and add more comfort.

 However, it is necessary for you to learn all about home renovation loans and their benefits before applying.

Why Choose Home Renovation Loan?

You have various options to raise funds for a house renovation. However, you will get many benefits by taking a loan to renovate your house.

Lower Interest Rates

If you choose a personal loan for home improvement, you will have to pay a higher interest rate.

 In comparison, a home renovation loan is accessible at the same rate as a housing loan, which makes it a better option.

Quick Processing

A home renovation loan offers a quicker processing time due to the minimal document requirement and hassle-free process. Borrowers can begin their house renovation quickly without waiting for the approval of the application. 

Once the application is approved, the amount is also disbursed quickly.

Minimal Documentation

When applying for a loan for home renovation, borrowers generally go through a simple documentation process. You will have to submit your income proof, identity proof, photos, property-related documents, etc. 

And if you have previously applied for other loan types, the documentation process will be easier since your financing company already possesses the needed documents.

Types of Home Renovation Loan

There are two primary types of home renovation loans.

Unsecured Home Improvement Loan

This home improvement loan type does not require any collateral. The interest rates are quite high due to lenders being more at risk. The tenure of this loan type is ten years or less. 

The CIBIL score plays a major factor in determining the interest. With a higher CIBIL score, you can avail of the unsecured loan at lower interest rates.

Secured Home Improvement Loan

This loan uses your house as collateral. It is also considered the 2nd mortgage loan. The benefit of this type is that borrowers can avail of an increased loan amount at a lower interest rate, with tenure in the range of 10-15 years. 

The interest rate depends on several factors, such as the borrower’s:

  • Age
  • Health condition
  • Location of the property
  • Property size
  • Credit rating

Eligibility Criteria For Home Renovation Loan

To secure a home renovation loan, you must meet certain eligibility criteria. To learn about eligibility for the loan amount, you can use the home loan EMI calculator

The following are the eligibility criteria for securing a home improvement loan:

  • Age: The applicant must be over 18 and under 70 years old. 
  • Citizenship: To avail of a home improvement loan, the applicant must be Indian.
  • Employment: The borrower must be salaried and employed by a government or private company. Lenders evaluate the income flow before approving the application, indicating that borrowers can repay the loan amount. However, you can also apply for a home improvement loan if you are a self-employed professional.
  • Credit Score: A good credit score shows the creditworthiness of the applicant. A decent credit score makes it easy to apply for a loan for the renovation of the house.

Documents Needed For Home Renovation Loan

The following are the documents that you should keep ready while submitting the application for a home improvement loan:

  • Income Proof: Salary slips, income tax return proof, total turnover, or bank statements of the previous six months can be used as income proof.
  • Identity Proof: Aadhaar Card, Voter ID, or Driver’s license are documents that can be used as identity proof.
  • Property Documents: Home loan documents, sale deeds, etc.
  • Residence Proof: Utility bills or passports are robust residence proof. 


A home renovation loan will help you improve the house’s utility and enhance the property value by maintaining the house’s quality. Low interest rates, hassle-free process, and minimal documentation make a home renovation loan the best option for those looking for quick cash for improving their house. 

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