With a home improvement loan, you can upgrade your existing home to a contemporary design and a more comfortable living space. This type of loan helps you to enhance your home in many ways such as tiling, flooring, internal and external paster and painting...etc.
This loan is similar to home loan, A home loan is provided to purchase a new home whereas a home loan for improvement is offered to renovate or reconstruct the pre-owned home. A good CIBIL score helps the individual to opt for a home improvement loan at an attractive rate of interest.
| Interest rate | Starting @6.40% onwards |
| Loan amount | Up to 90% of total improvement cost |
| Loan Tenure | Ranges from 12 – 180 months |
| Processing fee | up to 0.50% loan amount |
| Bank name | Min Interest rate (p.a) | Processing fee |
| Bank of Baroda | 6.50% | Rs. 8,500 - Rs. 25,000 |
| HDFC Bank | 6.70% | Rs. 3,000 - Rs. 5,000 |
| ICICI Bank | 6.70% | Up to 0.50% |
| Bank of Maharashtra | 6.40% | Rs. 10,000 |
| Canara Bank | 6.90% | Rs. 1,500 - Rs. 10,000 |
| Bank of India | 6.50% | - |
| Aditya Birla Housing Finance | 9.00% | Up to 1% |
| Bandhan Bank | 6.40% | Up to 1% |
| Axis Bank | 6.70% | Rs. 10,000 |
| Yes Bank | 8.95% | Up to 1% |
| Union Bank | 6.60% | - |
| UCO Bank | 6.90% | Up to 0.15% |
| United Bank | 8.00% | Up to 60% |
| State Bank of India | 6.75% | 0% - 0.35% |
| Indian Overseas Bank | 7.05% | Up to 0.50% |
| LIC Housing Finance | 6.90% | Rs. 10,000 -Rs. 15,000 |
| Federal Bank | 6.65% | Rs. 3,000 - Rs. 7,500 |
| Tata Capital | 6.90% | Up to 0.50% |
| Kotak Mahindra Bank | 6.55% | Up to 0.50% |
| Punjab National Bank | 6.50% | Up to 0.35% |
| Indiabulls | 7.60% | Min 0.50% |
Also Read: Compare which bank offers best Interest rates on home loan
For Salaried Individual:
For Self-Employed:
Eligibility criteria for home improvement loans depend on various factors such as repayment history, creditworthiness, age of the individual, repayment history, etc.
Shortage of work experience: - Banks will verify the work experience of the individual to determine their ability to pay the monthly EMI and repay the principal amount.
Low CIBIL Score: - CIBIL Score plays a significant role in verifying the past financial creditworthiness, the CIBIL Score ranging 750 or above, comes in the good category, and if the score ranging 600 or below is a low score it indicates that the borrower does not pay EMI and bills on time.
Also Read: Top 5 ways to Increase home loan eligibility
Hence, knowing the facts about home improvement loans gives complete knowledge. Financeseva allows you to compare interest rates by several banks and get the best deal for a home improvement loan.
CA Vikas Jain - Our Mentor
9863-02-02-02