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ToggleHomeowners in India who are interested in renovating their existing residential properties can receive loan through a specialised type of loan known as a home renovation loan.
This type of loan is designed to provide financial assistance to homeowners. These loans are distinct from conventional home loans in that the amount that is borrowed is intended solely for the purpose of carrying out home improvement projects, as opposed to providing funds for the purchase of a new property.

Also Read – Key Features of Home Renovation Loans in India Provided by Banks.
Various financial institutions, such as banks, non-banking financial companies (NBFCs), and housing finance companies (HFCs), provide home renovation loans.
Typically, these loans are unsecured, which means that no collateral is necessary. Nevertheless, the eligibility criteria and interest rates may differ based on the borrower’s creditworthiness and the lender.
Key Features of Home Renovation Loans:
- Purpose: The primary purpose of a home renovation loan is to fund various renovation and improvement activities in an existing residential property. It can include tasks such as interior remodeling, exterior repairs, flooring upgrades, plumbing and electrical work, painting, roofing, and other enhancements.
- Loan Amount: The loan amount for home renovation is usually based on the estimated cost of the renovation project. Different lenders may have varying limits on the maximum loan amount they offer.
- Interest Rates: Home renovation loan interest rates can be either fixed or floating. The interest rates may depend on factors such as the borrower’s credit score, income, loan amount, and repayment tenure.
- Repayment Tenure: The repayment tenure for home renovation loans typically ranges from a few months to several years, depending on the lender’s terms and the borrower’s preference. Longer repayment tenures generally result in lower monthly instalments but may lead to higher overall interest costs.
- Eligibility Criteria: Lenders assess the eligibility of applicants based on factors such as their income, credit history, age, employment stability, and existing financial obligations.
- Documentation: Borrowers need to provide certain documents to support their loan application, including proof of identity, address, income, bank statements, and details of the renovation project.
- Tax Benefits: In India, homeowners may be eligible for tax benefits on the interest paid on home renovation loans under Section 24(b) of the Income Tax Act, 1961. However, it is essential to consult a tax advisor or financial expert for specific details and eligibility criteria.
Advantages of Home Renovation Loans:
- Access to Funds: Home renovation loans provide homeowners with access to the necessary funds without having to deplete their savings or disrupt their financial planning.
- Improvement of Property Value: By renovating and enhancing the property, homeowners can potentially increase its market value, which can be beneficial in the long run, especially if they plan to sell or rent the property.
- Flexible Repayment: Home renovation loans often come with flexible repayment options, allowing borrowers to choose a repayment tenure that best suits their financial situation.
- Quick Approval Process: Compared to other types of loans, home renovation loans typically have a faster approval process, allowing homeowners to start their renovation projects sooner.
Home renovation loan in India is a useful financial tool that empowers homeowners to undertake renovation projects and improve the aesthetics, functionality, and value of their existing residential properties. However, before applying for any loan, it is crucial to conduct thorough research, compare interest rates and terms offered by different lenders, and ensure that the monthly installments fit comfortably within the borrower’s budget.
Disclaimer- The information mentioned is a computation of multiple sources from different websites, for more accurate information, please consult a CA, or banks. Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners.
About us- “Estate Contractor” is a known Kolkata, India-based home remodelling and interior design firm that provides a broad variety of services to restore and improve residential properties. For more information, browse our website. Because of their unwavering dedication to providing excellent service and making sure their customers are happy, Estate Contractor has become a trusted partner for homeowners looking to improve their living spaces.
FAQS-
- How much does Kolkata home renovation cost? Home renovation in Kolkata costs depend on its scope. Remodelling costs range from ₹1,000 to ₹2,500 per sq. ft. for basic renovations to ₹3,000 to ₹5,000 for extensive structural changes. A professional contractor like Estate Contractor can provide an accurate estimate.
- How is a home renovation carried out? A home renovation typically includes structural repairs, electrical and plumbing upgrades, flooring, wall treatments like painting or wallpaper, kitchen remodelling, bathroom remodelling, and interior design upgrades like false ceilings and lighting. Scope depends on needs and budget.
- How to plan a whole-house remodel? Set a budget, identify your needs and goals, hire a reputable contractor, and create a detailed timeline for a full home renovation. Design and aesthetic improvements should follow essential repairs. Estate Contractor can help you design a renovation plan.
- What is the cost of making renovations? The cost of home renovation is determined by the size of the property, the extent of the renovation, and the materials that are utilised. Basic updates to extensive remodels can cost ₹1,000 to ₹5,000 per sq. ft., ranging from minor to luxury upgrades.Contact us for a free quote and discussion.
- How can an old house be properly renovated? Before starting any renovations on an older home, it’s important to take a close look at the plan, plumbing, and electrical connections. Update electrical wiring and plumbing after fixing basics issues. Finally, improve painting, flooring, and kitchen cabinets. Estate Contractor can help you modernise while retaining the home’s character.
- What are full-house renovation steps? Full-house renovation steps:
- Preliminary budgeting and planning
- Hiring a contractor
- Repairing structural damage
- Electrical and plumbing upgrades
- treatments for the floor and walls
- Remodelling of the kitchen and the bathroom
- Final inspections and finishes
- Does renovation include painting? Home Renovations usually include painting. It’s one of the last steps to updating your home. Our comprehensive renovation packages include professional painting by Estate Contractor.
- Which of the following is included in a renovation package? Structural repairs, plumbing, electrical work, flooring, wall treatments, kitchen and bathroom remodelling, painting and false ceilings are typical renovations. Estate Contractor offers customised renovation packages for your needs and budget.
- What kind of renovations should I prioritise? Beginning with essential structural repairs and updates to plumbing and electrical systems is a good place to start. After you’ve done the basics, you should focus on busy areas like the kitchen and bathroom. Next, you must discuss about flooring and wall coverings.
- How can I renovate my home most effectively? Renovating a home requires careful planning, prioritising necessary repairs, and a reliable contractor. Set a budget and timeline, and use sustainable materials for long-term benefits. To streamline renovations, Estate Contractor can offer expert advice.
- In which order should a house be renovated? Home Remodelling usually begins with structural repairs, then plumbing and electrical work, then flooring, walls, and ceilings. Finish with kitchens, bathrooms, painting, and décor.
- How to DIY home renovation? Start your home renovation with a plan and budget. Start with essential repairs, then add aesthetics. Complex plumbing, electrical, and structural work should be done by professionals. Estate Contractor handles technical renovations.
- How can I plan the layout of my home remodel? Choosing materials that fit your budget, style preferences, and layout are all part of renovation design. An interior designer or contractor like Estate Contractor can help you realise your vision.
- How should I prepare my room for renovation? Clear out all furniture, protect floors and surfaces, and allow contractors into your room before renovating. Estate Contractor can help plan ahead to minimise disruption.
- What is the renovation budget? Renovation costs depend on project size and materials. Simple room renovations start at ₹50,000, while full home renovations can cost ₹5 lakhs to ₹20 lakhs or more, depending on the scope of work.
- How much does a room renovation cost in India? Renovating a room in India can range from ₹50,000 to ₹2 lakhs, depending on the work involved, including painting, flooring, and electrical upgrades. Luxury renovations may exceed this.
- What’s renovation cost? How much does Kolkata interior work cost per square foot? Renovations are capital expenses that increase property value. In Kolkata, interior work costs typically range from ₹1,000 to ₹3,000 per sq. ft., depending on material quality and design complexity.
- What’s the most expensive home renovation? Kitchen remodel and bathroom remodels, structural changes, and luxury materials like marble flooring and custom cabinetry are the most expensive parts of a renovation. However, these investments often increase property value.
- What is the process for estimating the cost of a renovation? To estimate renovation costs, evaluate the scope of work, get contractor quotes, and account for material, labour, and contingencies. Estate Contractor provides detailed and transparent renovation estimates.
- How do I budget home renovations? Creating a home renovation budget involves listing all tasks, estimating material and labour costs, and setting aside 10-15% for surprises. Estate Contractor provides accurate pricing and professional advice.
- How much should renovations cost? Your spending should reflect your property’s value and renovation goals. Spend 5-15% of your home’s value on renovations for a good ROI. Estate Contractor can optimise your renovation budget.
FAQs about Estate Contractor–
1. What services are included in your home renovation package?
Our home renovation services cover everything from living room, bedroom, and bathroom transformations to modifications in plumbing and electrical systems, flooring, tiling, and painting. To learn more about our offerings, please refer to the details on our Home Renovation Services page.
2. How do you ensure the quality of the renovation work?
We only use high-quality materials and employ experienced professionals to ensure that our craftsmanship meets the highest standards. For more information on our commitment to quality, visit our Home Renovation Services page.
3. Can I customize the renovation according to my preferences?
Yes, we offer custom solutions tailored to your specific preferences and budget. We work closely with you to understand your vision and implement it effectively. Find out more about our custom solutions on our Home Renovation Services page.
4. What is your approach to project timelines?
We are dedicated to completing assignments within the allotted time frame. Our team ensures timely updates and transparency throughout the project. More details can be found on our Home Renovation Services page.
5. How do I get a quote or book a consultation?
To get a quote or book a consultation, simply reach out to us through our contact information provided on the Home Renovation Services page. We’ll be happy to assist you in making your dream home a reality.
6. What areas do you serve?
We provide home renovation services in Kolkata and nearby regions. For more information on our service locations, please check our Home Renovation Services page.
7. Can you handle both small modifications and complete home makeovers?
Yes, we handle projects of all sizes, whether it’s minor modifications or complete home makeovers. To understand more about the range of services we offer, please visit our Home Renovation Services page.
8. How do I ensure I’m kept updated throughout the project?
We prioritize transparency and regular communication. We’ll keep you informed of all new developments and updates throughout the project duration. Learn more about our approach to client communication on our Home Renovation Services page.