Purchasing a home is one of the biggest investments of your life which reflects your status and accomplishments. The ambience of your home can relax your mind at any time. Another great importance of having your own house is- it provides a roof to our loved one when you are not there. The advantages are many and in terms to preserve them you need to maintain your house. Maintaining our house is not only essential for ensuring its value but also to ensure a safe place for you and your family.

What do you need to maintain/renovate a home?

Home maintenance mostly includes home repair, remodelling, renovation, etc. This is done to make your house look more beautiful, add more comfort to your homestay and most importantly to preserve or add to its value. But what if you don’t have the cash on hand? Or what if you don’t want to use your savings on it?

Availing a home improvement loan to modify or renovate your home is the best option to you. The main benefit of a home improvement loan is that it allows you to upgrade your home to better design and a more comfortable living space as per your tastes and preferences. 

What is a home improvement loan?

Home improvement loans are similar to a house loan where you get funds to improve /renovate your home which you already own. A home renovation loan allows you to upgrade and do the right repairs to your home. Doing this has many advantages which include:

  • Adds to its resale value 
  • Adds comfort, style, and looks
  • Preserves its value
  • Customizations as per you

Why should you opt for a home improvement loan?

Low-interest loan: A home improvement is usually secure against ownership. Hence the loan is secured; it comes at the same rates as a home loan, which makes it the best option when it comes to funding the renovation or extension of your house.

Tax benefits: You can avail a deduction of up to ₹ 30,000 per annum under section 24 of the income tax act. The deduction is applicable on the interest component that you pay for your home renovation loan. This exemption is within the overall limit of ₹ 2 lakh available on loan interest payment of self-occupied homes.

Flexibility to use: You are free to utilize your home improvement loan for a range of activities in your home renovation including repair, flooring, extension, painting, etc. But you can’t use this for any of your personal use.

Long tenure: Home renovation loans generally come for a long tenure period which ranges from five to fifteen years which makes the repayment easier for the borrowers. 


  • Duly filled application form
  • The original title deed of your home
  • Identity and residence proof
  • Income and employment proof
  • Last 6-month bank statement
  • Passport size photograph
  • A cheque for processing fee
  • Architect/engineer’s estimate for the home improvement work

Note: A home renovation loan can be applied either individually or jointly. Applying for a joint home renovation loan can increase your eligibility while if the property has joint owners, all owners of the property have to necessarily apply for the home improvement loan.