Home loan for interiors in India is a specialized financing option to fund interior design, furnishings, and upgrades, often categorized under home renovation or improvement loans. This guide explores home loan for interiors interest rates starting from 8.25% p.a., eligibility criteria focusing on income and credit, benefits like tax deductions, and a straightforward application process. As per the latest updates in September 2025, lenders like PNB Housing offer floating rates at 8.25%, while HDFC and ICICI provide competitive fixed options, with the new GST regime's slab simplification (effective September 22) potentially reducing material costs by 3-5% for interior projects. Key aspects include home loan for interior decoration eligibility, top banks for home improvement loans, and how to calculate EMIs. For official details, visit PNB Housing Official Website. Dive into the sections below for factual insights on rates, eligibility, benefits, and application.
Overview of Home Loan for Interiors in India
Home loan for interiors in India helps homeowners finance interior work like furniture, painting, and modular kitchens, often as part of home renovation loans. Banks like HDFC, ICICI, and PNB Housing provide these, treating interiors as improvement expenses.
In September 2025, the GST regime's slab merger to 5% and 18% (effective September 22) could lower costs on interior materials like tiles (from 18% to 5%), making projects more affordable. This overview sets the foundation for understanding home loan for interior decoration eligibility and options.
These loans support PMAY-linked upgrades for low-income groups.
Key Providers
Banks and NBFCs specialize in renovation loans.
Market Trends 2025
Increased focus on home makeovers post-pandemic.
Latest Home Loan Interest Rates for Interiors 2025
As of September 13, 2025, home loan for interiors interest rates start at 8.25% floating from PNB Housing, with HDFC at 8.50% and ICICI at 8.75%.
TATA Capital offers 10.99%, Canara Bank at 6.90% for secured.
Provider
Rate (% p.a.)
Tenure (Years)
Processing Fee (%)
PNB Housing
8.25 (Floating)
Up to 30
0.50
HDFC
8.50-9.75
Up to 15
Up to 1
ICICI
8.75-10.00
Up to 15
Up to 1
Canara Bank
6.90-8.90
Up to 30
Low
TATA Capital
10.99+
Up to 15
Security-based
Bank of Baroda
8.00-9.50
Up to 15
Minimal
Floating rates adjust; fixed slightly higher.
Fixed vs Floating
Floating at 8.25% varies; fixed at 8.5-9.5% stable.
Special Offers
Canara waives fees for women.
Eligibility Criteria for Home Loan for Interiors
Home loan for interior decoration eligibility requires Indian residency, age 21-70, property ownership, and minimum income.
CIBIL 700+ preferred.
Criteria
Salaried
Self-Employed
Age
21-65
25-70
Income
₹30,000 p.m.
₹3 lakh p.a.
CIBIL Score
700+
700+
Property Ownership
Yes
Yes
Work Experience
2 years
3 years
Co-applicant can strengthen.
Income Assessment
Based on EMI capacity.
Benefits of Home Loan for Interior Decoration
Benefits include funding for designs, tax savings, flexible terms.
High Loan Amount: Up to ₹5 crore.
Tax Deduction: ₹30,000 under 80C.
Flexible Tenure: Up to 30 years.
Quick Disbursal: 5-10 days.
No Prepayment Penalty: Early pay.
Enhances home value.
Additional Perks
Streamlined for renovations.
Secured vs Unsecured Loans for Interiors
Secured loans use home equity, rates 6.90-8.50%. Unsecured, like ICICI at 10.99%, no collateral.
Type
Rate (%)
Limit (₹)
Pros
Cons
Secured
6.90-9.00
Up to 5 Cr
Lower rates
Collateral risk
Unsecured
10.99+
Up to 1 Cr
No collateral
Higher rates
Secured for large interiors.
Choosing the Right Type
Based on project size.
How to Calculate EMI for Interior Home Loans
EMI = P * r * (1+r)^n / ((1+r)^n - 1), where P=principal, r=rate/12/100, n=tenure*12. For ₹10 lakh at 8.25%, 10 years: EMI ≈ ₹12,280.
Loan (₹ Lakh)
Rate (%)
Tenure (Years)
EMI (₹)
Total Interest (₹ Lakh)
10
8.25
10
12,280
4.74
20
8.50
15
19,680
15.42
30
8.75
10
37,500
15.0
Use calculators for accuracy.
EMI Factors
Rate and tenure key.
Application Process for Home Loan for Interiors
Apply online via bank portals or visit branches with interior estimates.
Check eligibility.
Select loan type.
Submit application with estimate.
Upload documents.
Get approval in 5-10 days.
Secured loans need valuation.
Online vs Offline
Online convenient; offline for detailed queries.
Documents Required for Interior Home Loans
Documents include ID, property proof, income, interior estimate.
What are the latest home loan for interiors interest rates in 2025?
Latest home loan for interiors interest rates in 2025 start at 8.25% floating from PNB Housing, 8.50% from HDFC, and 8.75% from ICICI.
What is the eligibility for home loan for interior decoration?
Eligibility requires Indian residency, age 21-70, property ownership, minimum income ₹30,000 p.m. or ₹3 lakh p.a., and CIBIL 700+.
What are the benefits of a home loan for interiors?
Benefits include high loan amounts up to ₹5 crore, tax deduction up to ₹30,000 under 80C, flexible tenure up to 30 years, quick disbursal, and no prepayment penalty.
Which banks offer home loans for interiors in 2025?
Banks like PNB Housing (8.25%), HDFC (8.50%), ICICI (8.75%), and Canara Bank (6.90%) offer home loans for interiors in 2025.
What is the difference between secured and unsecured loans for interiors?
Secured loans offer 6.90-9.00% rates with up to ₹5 crore using collateral, while unsecured loans at 10.99+ require no property but have lower limits.
How to calculate EMI for a home loan for interiors?
Calculate EMI with EMI = P * r * (1+r)^n / ((1+r)^n - 1); for ₹20 lakh at 8.50% over 15 years, EMI ≈ ₹19,680.
What is the application process for a home loan for interiors?
The process involves checking eligibility, selecting loan type, submitting application with interior estimate, uploading documents, and getting approval in 5-10 days.
What documents are required for a home loan for interiors?
Documents include ID proof, property ownership deed, income proof, interior contractor quote, and address proof.
Can I use a home loan for interiors for any type of upgrade?
Yes, for painting, tiling, furniture, but lenders may restrict luxury items; confirm scope with bank.
Is there GST on home loan for interiors in 2025?
GST on home loan for interiors in 2025 is 18% on processing fees, not principal; see Ambak GST on Real Estate for details.
