Check your eligibility
What These Loans Fund
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Structural repairs and waterproofi...
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Flooring
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Kitchen and bathroom remodelling
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Electrical and plumbing rework
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Extension or addition of rooms
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Contractor labour and material cos...
Who Can Consider This Loan?
- Indian resident or NRI, generally aged 21 to 65 at loan maturity
- Salaried: stable employment, commonly two years total with one year current
- Self-employed: three years of business vintage with filed returns
- Property with clear, marketable title and approved plans
- Credit score materially affects both approval and the rate offered
- Total EMI obligations usually capped at 50 to 60% of net income
What May Not Be Funded?
- Loose furniture and movable furnishings, at most lenders
- Appliances and consumer durables
- Work without required municipal approvals
- Amounts above the lender's assessment of the estimate
- Processing, legal and technical charges
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A home renovation loan funds repairs, improvements and remodelling of a property you own, secured against that property. Because it is secured, it is priced well below a personal loan taken for the same purpose — often by four or five percentage points.
Lenders assess it against the property's value and against a contractor estimate or itemised plan. Disbursal is frequently staged against work completed rather than paid as a single lump, which is a discipline that protects both parties.
Interest on a loan for repairs and renovation of a self-occupied property is deductible under Section 24(b), subject to a separate and lower ceiling than the one for purchase. That is worth knowing before choosing between this and an unsecured alternative.
Who should consider it
Homeowners undertaking substantial repairs, remodelling or extension. Owners of older properties needing structural work. Anyone considering a personal loan for renovation, who would almost always be better served here.
Benefits
- Rates far below an unsecured personal loan for the same work
- Tenure up to fifteen years, keeping the EMI modest
- Interest deductible under Section 24(b) for a self-occupied property, within limits
- Staged disbursal aligned to work completion
- Available alongside an existing home loan on the same property
- No prepayment penalty on floating-rate loans to individuals
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Structural repairs and waterproofing
- Flooring, plastering, painting and internal works
- Kitchen and bathroom remodelling
- Electrical and plumbing rework
- Extension or addition of rooms, with approvals
- Contractor labour and material costs per the estimate
Usually not funded
- Loose furniture and movable furnishings, at most lenders
- Appliances and consumer durables
- Work without required municipal approvals
- Amounts above the lender's assessment of the estimate
- Processing, legal and technical charges
- Unauthorised construction or works that breach approved plans
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Eligibility assessed before any application goes out Income, existing EMIs, credit profile and the property itself. Scattering applications across lenders damages your credit file for no benefit.
- 2 Compared on total cost across the full term Rate, processing fee, insurance bundling and prepayment terms together. Over twenty years, half a percentage point is a very large number.
- 3 Legal and technical due diligence Title search and valuation. This is also the stage that protects you, not just the lender — a title problem found now is a problem avoided.
- 4 Sanction, and reading it properly The sanction letter states the rate basis, reset frequency and every charge. We go through it with you before you sign.
- 5 Disbursal, and a plan for prepayment Funds released against the agreement or construction stage. We set out how prepayment would work, because it is the single biggest lever you hold.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Get a detailed, itemised contractor estimate before applying. Lenders assess against it, and a vague estimate produces a lower sanction.
- The Section 24(b) ceiling for repairs is separate from and lower than the one for purchase. Confirm the applicable limit rather than assuming the purchase figure.
- Work requiring municipal approval must have it. Lenders will not fund unauthorised construction, and it also compromises the property's title.
- Staged disbursal is a protection, not an inconvenience. It stops you funding a contractor who then stops working.
- Compare against a top-up on your existing home loan. Where you have one, the top-up is often simpler and cheaper than a separate renovation loan.
Documents required
- Identity proof — Aadhaar, PAN or passport
- Address proof
- Salaried: last three months of salary slips, Form 16 and appointment letter
- Self-employed: last three years of income tax returns with computation and financials
- Bank statements for the last six to twelve months
- Property documents — sale agreement, title deed, approved plan
- Property tax receipts and encumbrance certificate
- Existing loan statements, where you are servicing other EMIs
Frequently Asked Questions
Why not just take a personal loan?
Because this is secured against the property and priced accordingly — often four or five percentage points cheaper, over a longer tenure. On a substantial renovation the difference in total interest is large enough to be worth the extra documentation.
Are furniture and appliances covered?
Generally not. Lenders fund works that are part of the property — flooring, plumbing, structural repairs, fitted kitchens — rather than loose furniture and consumer durables. Check the specific list before budgeting.
Do I get a tax deduction?
Interest on a loan for repairs and renovation of a self-occupied property is deductible under Section 24(b), but within a separate and lower ceiling than the one applying to a purchase loan. Confirm the current limit against your own figures.
How is the money released?
Frequently in stages against work completed rather than as one lump. It is a discipline that protects you as much as the lender, because it prevents fully funding a contractor who has not finished.
Should I take a top-up on my home loan instead?
If you already have a home loan, often yes — a top-up is usually simpler, faster and at a similar rate, without a fresh mortgage process. Compare both before deciding.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.