Can we get a Home Loan for renovation?

No, a Home Loan can only be used to buy an existing or an under-construction house/flat. It cannot be used for renovation purposes. For that, you need to opt for a Home Renovation Loan.

How do Home Renovation Loans work?

Home Renovation Loans are a subset of Loans Against Property wherein you keep your existing property as security and avail of a loan against its market value. You can then use these funds for renovation, remodelling, or reconstructing parts of your home.

Which loan is best for renovation?

A Home Renovation Loan is a secured loan that can be used for renovation of all sorts. It can be used to fund housing-related expenses. Depending on the property kept as a collateral, you get a sizeable loan amount, low interest rates and a flexible tenure to repay your loan.

What is the purpose of Home Renovation Loan?

It could be an expansion, essential repairs, or structural changes to your home – a Home Renovation Loan gives you the financial support to ensure you and your family live the lifestyle you deserve and aspire.

What is the maximum tenure for a Home Renovation Loan?

The maximum tenure for Home Renovation Loan is the same as that of Loan Against Property – which is 17 years.

What are the tax benefits available on a Home Renovation Loan?

You can avail of a deduction of Rs.30,000 per annum on the interest component of a Home Renovation Loan (under Section 24). This deduction of Rs.30,000 is only applicable for self-occupied homes and is within the overall limit of Rs.2 Lakh available on loan interest payment of self-occupied homes.

What kind of security will I have to provide for a Home Renovation Loan?

You will have to provide your existing property such as a flat or a bungalow as security for availing of a Home Renovation Loan. It could be a property you live in or another property that you have rented out.

Home Renovation Loan | Apply for Home Improvement Loan

Loan Against Property for Home Renovation

A Loan Against Property is a secured financing option that allows you to raise funds against a residential or commercial property for a range of financial requirements, including home renovation, business expansion, or debt consolidation. Since renovation and improvement work can involve significant expenditure, a Loan Against Property can help fund these requirements while allowing you to retain ownership of the property.

Bajaj Housing Finance offers Loan Against Property to support expenses related to renovating, remodelling, repairing, or extending your home. With flexible end-use, the loan can be used to meet different renovation-related expenses based on your requirements.

Loan Against Property for Home Renovation: Features and Benefits

When you avail of a Loan Against Property for home renovation, you can benefit from features designed to support sizeable renovation requirements and convenient repayment.

Sizeable Loan Amount

A Loan Against Property can provide access to a sizeable loan amount of Rs.5 Crore* or higher, subject to eligibility. This can help you finance major renovation, remodelling, or improvement expenses without having to rely entirely on your existing savings.

Quick Disbursal

Once your Loan Against Property application is approved, the sanctioned amount can be disbursed within 72 hours*. Quick access to funds can help you plan and carry out renovation work easily.

Minimal Documentation

We require minimal documentation to process Loan Against Property applications. With the required income, identity, and property-related documents in place, you can complete the application process conveniently.

Competitive Interest Rates

Salaried and self-employed applicants can avail of a Loan Against Property at competitive interest rates. A suitable interest rate can help keep the overall cost of borrowing manageable over the loan tenure.

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Tax Benefit on Loan Against Property for Home Renovation

Interest paid on a loan used to repair, renew, or reconstruct a residential property may qualify for a tax deduction, subject to the applicable provisions and tax regime.

Under Section 22 of the Income Tax Act, 2025, interest payable on capital borrowed for the repair, renewal, or reconstruction of a house property can be deducted while computing income from house property. For a self-occupied property, the deduction for interest on a loan taken for renovation or repairs is limited to Rs.30,000 in a tax year. This benefit is available when the taxpayer opts for the old tax regime.

Documents Required for Loan Against Property for Home Renovation

If you are applying for a Loan Against Property for home renovation, you need to submit identity proof, address proof, income proof, PAN Card or Form 97 (mandatory), and relevant property documents. To view the complete list, click here.

Note: Additional documents may be required during processing.

Eligibility Criteria for Loan Against Property for Home Renovation

To apply for a Loan Against Property, you need to meet the following eligibility criteria:

For Self-Employed Applicants

Must be a resident citizen of India
Must be between 25 and 70 years** of age
Must have a minimum of 3 years of business continuity

For Salaried Applicants

Must be a resident citizen of India
Must be between 28 and 58 years** of age
Must be employed with a public sector organisation, private company, or multinational corporation
Must have at least 3 years of work experience

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

How to Apply for a Loan Against Property for Home Renovation

You can apply for a Bajaj Housing Finance Loan Against Property online by following these steps:

Go to the Loan Against Property application form and enter your basic details, such as your name, mobile number, and employment status.
Select the type of loan you wish to apply for.
Provide your net income so that suitable loan offers can be identified based on your financial profile.
Enter your residential PIN code and the loan amount you require.
Click on ‘Generate OTP’ and verify your mobile number using the OTP received.
Provide the required financial and property-related details.
Click on ‘Submit’ to complete your application.

Once your application is submitted, a Bajaj Housing Finance representative will contact you within 24 hours* to assist you with the subsequent steps, including document submission and verification.

*Terms and conditions apply.

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Frequently Asked Questions

Yes, a Loan Against Property can be used to fund eligible home renovation, repair, and improvement expenses, subject to the lender’s policy and approval of the proposed renovation work.

Interest paid on funds borrowed for the repair, renewal, or reconstruction of a house property qualifies for a tax deduction under Section 22 of the Income Tax Act, 2025. The maximum deduction available is Rs.30,000.

Yes, the property is mortgaged as security for the Loan Against Property, but you generally continue to occupy and use it during the loan tenure.