Home Renovation Loan

Finance your home renovation by using a top-up loan.
Home Loan up to Rs. 15 crore*
APPLY ONLINE
Home Renovation Loan
APPLY ONLINE
2 mins
26 July 2023

Renovating your home can be an expensive affair that often needs an additional loan. To get a home renovation loan, you can go for a personal loan or a credit card loan, but a top-up loan on a home loan is an affordable option.

Home loan balance transfer by Bajaj Finance is an affordable option and also offers a top-up loan on your existing loan amount. You can use it for home renovation, buying big-ticket appliances, and more. The top-up loan comes at a competitive interest rate, starting at 8.5% p.a.

By transferring your existing home loan to Bajaj Finance, you can get a top-up loan of up to Rs. 1 crore* or higher.

Home renovation loan guidelines

  1. Assess your renovation needs: Scope out the estimate of your home renovation project before applying for a home loan balance transfer. Consider any major alterations and upgrades to calculate the approximate cost involved.
  2. Understand the eligibility criteria: Lenders consider factors such as your repayment history with your current lender, property value, and the outstanding amount on your existing home loan. It is advised to clear all your EMIs with your current lender to avoid rejection of your balance transfer request.
  3. Evaluate the loan terms: Compare the terms and conditions offered by different lenders for top-up loans, much in advance. Consider factors such as interest rates, processing fees, repayment tenure, and any other associated charges.
  4. Apply for the top-up loan: Submit the necessary documents as per the lender's requirements, which may include your KYC documents, income proof documents, property documents, and bank statements. The lender will evaluate your application and verify the details provided.
  5. Check the repayment schedule: Top-up loans generally have a separate repayment schedule, but some lenders club the EMIs with your primary home loan as well. Make sure you have enough information on the repayment schedule and the EMI amount before your loan starts.

It is important to note that the availability of a top-up loan and its terms may vary depending on the lender and your financial circumstances. It is advisable to consult with your specific lender or financial institution to get accurate and up-to-date information tailored to your situation.How to use your home renovation loan

A home renovation loan offers a flexible way to finance various home improvement projects. You can use it to remodel your kitchen or bathroom, add rooms, repair or replace the roof, upgrade your HVAC system, enhance landscaping, finish the basement, and make structural, cosmetic, or energy efficiency improvements. The loan can also be used for safety, accessibility, or smart home upgrades, and even to create a rental unit within your property. Careful planning and budgeting are essential when considering a home renovation project, and consulting with financial experts can help you select the right financing option for your specific needs.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

Can we get a home loan for renovation?

Yes, you can obtain a home loan specifically for renovation purposes. This type of loan is commonly referred to as a ‘Home Renovation Loan’ or a ‘Home Improvement Loan.’ These loans are designed to provide financing for renovation, repairs, and upgrades to your existing home.

Which loan is best for home renovation?

The best loan for a home renovation depends on your specific financial situation, the scope of your renovation project, and your preferences.

What is the difference between a home loan and home renovation loan?

A home loan, often referred to as a mortgage, is intended for buying or refinancing a home. It typically spans 15 to 40 years and is secured by the property itself. The loan amount is based on the property's purchase price or appraised value, covering the entire property cost. Interest rates for home loans are competitive and generally lower than other loan types.

In contrast, a home renovation loan is specifically tailored for funding home improvement projects, repairs, or renovations on an existing property, not for home purchases. It can be either short-term or medium-term, depending on the project's scope and may or may not require collateral. The loan amount is determined by the estimated renovation costs, including materials and labour, and interest rates can vary based on the loan type and lender.

Related Videos