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Give your Home your Dream Makeover using a Home Renovation Loan

4 Mins 04 Apr 2022 0 COMMENT


You are one of the lucky few who already own a house. But is it designed as per your desires? Would you call it your dream home? If you answered these questions with a ‘No’, you should not just settle for four walls. Your home should be a reflection of you. It’s a place that you spend most of your life in. Designing your home as per your taste and style is a delightful feeling and a dream for many. But the best part is, now it does not have to stay a dream for you anymore. You can revamp your house as per your desires and make it your happy place.

Transforming your house into your Dream Home

Even the thought of a brand new renovated house will get you all excited. Can you imagine the happiness your family and you will experience when you start living in your renovated home? It has probably bought a smile to your face already.

Maybe you are debating a house revamp and renovation due to the costs involved. Of course, quality raw materials, efficient labour, designing fees, superior furnishings, fittings, etc., do not come cheap. But, let these costs not worry you anymore. A Home Renovation loan will take care of it all. Why use up your savings or liquidate any investments when affordable home loans for renovation are available. More so, they come with irresistible features that make them a rational purchase.

Additional read: 6 Tips to enhance your home loan eligibility

Availing a Loan for Home Renovation

Identify your Renovation Needs

That is the prerequisite you need to list down before starting the loan procurement process. Are you looking to upgrade your furnishings, or your tiling or a painting job, or plastering, repairs and essential maintenance work, or a complete makeover? Listing your requirements will bring you to the ballpark amount you will require to complete the task.

Understand the Interest Rates for a Home Renovation Loan

You can avail of a Home Renovation Loan individually or with a co-applicant. But, if you have a co-applicant, the chances of getting a loan at better rates are higher. Your credit score will also play a part in deciding the interest rates that apply to you for this loan. Loans for home renovation are available at fixed interest rates and floating interest rates. If you opt for a fixed interest rate, you will have to pay the same interest rate throughout the loan tenure. If you select a floating interest rate, your interest rate stays variable. It may start at a low rate, but it can spike at any time. You must opt for a fixed or floating rate based on your repayment capacity.

Additional read: Tax Benefits on Second Home Loan

Repayment of Loan

You have to repay the loan with EMIs (Equated Monthly Instalments). Your current income level, the stability of your incomes, age, household income, number of dependents you support, lifestyle expenses, and existing assets and liabilities will be factored in to decide your loan repayment aspects. These aspects include the loan tenure, EMI amount, and interest rate. A longer-term means small-sized EMIs, but more cost. Similarly, a shorter loan tenure translates into large-sized EMIs at a relatively lower price. Chose a duration that takes care of your debt at the earliest possible but gives you enough comfort to live your life without any financial hindrances. The Home Renovation Loan calculator will help you decide on all of these factors.

Additional read: Prepaying a Home Loan-Good Idea or Bad

Documentation requirements

You must always keep your documents needed to complete the process formalities handy in advance. It makes the loan procurement process smooth and quick. Following is a list of essential documents that you would require,

Identity and Address Proof

  • A PAN Card is compulsory for your KYC.
  • Additionally, you may require your Aadhar Card, Passport, Driving License, or any other equivalent document.

Income Proof

  • Last three months Salary Slips
  • Last six months Bank Statement, Form 16, and IT Return. These will also showcase details of your ongoing loan repayment if any.
  • Educational Qualification Certificates. This is applicable especially if you are salaried.

Home Renovation Documents

  • A cost estimate of the proposed renovation work
  • The original title deeds of your house
  • A non-encumbrance proof of your house

Online Application Process

Thanks to technology, you can apply for a home renovation loan online. It is time-saving and hassle-free. But selecting the right institution for availing this loan can be a challenge. Especially since most of the lenders offer many competitive and compelling features. Here, thorough research online will guide you and give you comparative interest rates and quotes. If you are looking for low-interest rates, great features, a choice of multiple lenders, and dedicated customer service, ICICI Direct can help you with a loan too. Their webpage provides valuable services like EMI comparison too.


Designing your home is as joyous as buying a home. Home means your comfort zone. It is not just a place, it’s a feeling. If a makeover can spruce up your existing home, go for it. Over the years, you must have collected hundreds of design ideas from all the gorgeous places you’ve seen. Unbolt these ideas from your hearts and mind and bring them to life.

Disclaimer– ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. We are distributors of Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited  various other Banks / NBFC for personal finance & housing related services & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.