Home loan for repairs in India is a specialized financial product designed to fund home renovations, structural fixes, and upgrades, offering tailored solutions for homeowners. This guide covers home loan for home repairs interest rates starting from 7.50% p.a., eligibility criteria including income and property ownership, benefits like flexible repayment options, and a detailed application process. As per the latest updates for September 2025, banks like SBI and HDFC have introduced competitive rates with processing fee waivers, while the new GST regime's slab simplification (effective September 22, 2025) may reduce material costs by 3-5%, indirectly lowering repair loan expenses. Key aspects include home repair loan eligibility for salaried and self-employed, top banks offering home loans for repairs, and comparisons of secured vs unsecured options. For official bank details, visit SBI Official Website. Explore the sections below for comprehensive insights on rates, eligibility, benefits, and application.
Overview of Home Loan for Repairs in India
Home loan for repairs in India caters to homeowners needing funds for renovations, structural repairs, or upgrades, distinct from construction loans with focused use. Offered by banks like SBI, HDFC, and NBFCs like Bajaj Finserv, these loans cover plumbing, roofing, and electrical fixes.
In September 2025, the focus is on affordable financing, with the new GST regime's 5% and 18% slabs (effective September 22) reducing input costs for materials, potentially lowering loan requirements by 3-5%. This overview highlights home repair loan eligibility and benefits.
Loans align with government schemes like PMAY for low-income repairs.
Key Providers
Banks and NBFCs offer tailored products.
Market Trends 2025
Increased demand due to monsoon damages.
Latest Home Loan Interest Rates for Repairs 2025
As of September 13, 2025, home loan for home repairs interest rates start at 7.50% from SBI and Bank of Baroda, with HDFC at 7.85% and Bajaj Finserv at 7.60% for unsecured loans.
Secured loans via home equity offer lower rates at 7.25% from PNB Housing. Rates remain stable with GST benefits.
Provider
Loan Type
Rate (% p.a.)
Tenure (Years)
Processing Fee (%)
SBI
Unsecured
7.50-8.90
Up to 10
0.50
Bank of Baroda
Unsecured
7.50-9.00
Up to 15
0.25
HDFC
Unsecured
7.85-9.50
Up to 15
Up to 1
Bajaj Finserv
Unsecured
7.60-9.25
Up to 10
Up to 2
PNB Housing
Secured
7.25-8.75
Up to 15
0.50
LIC Housing
Secured
7.80-9.00
Up to 15
Nil
ICICI
Unsecured
8.00-9.75
Up to 10
Up to 1.5
Secured loans require property equity.
Fixed vs Floating
Floating rates adjust with market; fixed at 0.5% higher.
Special Offers
HDFC waives fees for seniors.
Eligibility Criteria for Home Loan for Repairs
Home repair loan eligibility requires Indian residency, age 21-70, property ownership, and minimum income.
CIBIL 650+ enhances approval.
Criteria
Salaried
Self-Employed
Age
21-65
25-70
Income
₹20,000 p.m.
₹2.5 lakh p.a.
CIBIL
650+
700+
Property Ownership
Yes
Yes
Work Experience
2 years
3 years
Secured loans need property valuation.
Income Assessment
Based on EMI affordability.
Benefits of Home Loan for Home Repairs
Home loan for home repairs offers quick funds, tax benefits, and flexible terms.
Quick Disbursal: Funds in 5-7 days.
Tax Benefits: ₹30,000 under 80C for repairs.
Flexible Tenure: Up to 15 years.
High Loan Amount: Up to ₹50 lakh unsecured.
No Prepayment Penalty: Flexible closure.
Suits urgent repair needs.
Additional Perks
Waivers for seniors.
Types of Home Loans for Repairs: Secured vs Unsecured
Secured home loans for repairs use property equity, offering lower rates.
Unsecured loans rely on income, higher rates but no collateral.
Type
Rate (%)
Limit (₹)
Pros
Cons
Secured
7.25-8.00
Up to 75% value
Lower rates, higher limit
Risk to property
Unsecured
7.50-9.50
Up to 50 lakh
No collateral, quick
Higher rates, lower limit
Choose based on property status.
Comparison Tips
Secured suits large repairs.
How to Calculate EMI for Repair Loans
EMI = P * r * (1+r)^n / ((1+r)^n - 1), where P=principal, r=rate/12/100, n=tenure*12.
For ₹20 lakh at 7.50%, 10 years: EMI ≈ ₹23,330.
Loan (₹ Lakh)
Rate (%)
Tenure (Years)
EMI (₹)
Total Interest (₹ Lakh)
20
7.50
10
23,330
9.996
30
7.60
15
28,200
20.76
50
7.85
10
60,250
22.3
Use bank EMI calculators.
EMI Factors
Rate and tenure impact total cost.
Application Process for Home Loan for Repairs
Apply online via bank portals or visit branches with repair estimates.
Check eligibility online.
Select loan type.
Submit application with estimate.
Upload documents.
Get approval in 5-10 days.
Secured loans need property valuation.
Online vs Offline
Online faster, offline for complex cases.
Documents Required for Repair Home Loans
Documents include ID, property proof, income, and repair estimate.
Document
Salaried
Self-Employed
ID Proof
Aadhaar, PAN
Aadhaar, PAN
Property Proof
Ownership deed
Ownership deed
Income Proof
Salary slips
ITR
Repair Estimate
Contractor quote
Contractor quote
Address Proof
Utility bill
Shop act
Secured loans need valuation report.
Verification
Banks verify repair scope.
Pros and Cons of Home Loan for Repairs
Pros: Quick funds, tax benefits; cons: Higher rates for unsecured.
Pros
Cons
Fast disbursal
Higher unsecured rates
Tax deductions
Collateral risk
Flexible tenure
Limited amount
No prepayment penalty
Doc intensive
2025 cost savings
Data unavailable on delays — verify officially
Ideal for urgent repairs.
FAQs on Home Loan for Repairs in India
What are the latest home loan for home repairs interest rates in 2025?
Latest home loan for home repairs interest rates in 2025 start at 7.50% from SBI, 7.60% from Bajaj Finserv, and 7.25% for secured loans from PNB Housing.
What is the eligibility for home repair loan in India?
Home repair loan eligibility requires Indian residency, age 21-70, property ownership, minimum income of ₹20,000 p.m. for salaried or ₹2.5 lakh p.a. for self-employed, and a CIBIL score of 650+.
What are the benefits of a home loan for repairs?
Benefits of a home loan for repairs include quick disbursal within 5-7 days, tax benefits up to ₹30,000 under 80C, flexible tenures up to 15 years, and no prepayment penalties.
Which banks offer the best home loans for repairs in 2025?
Banks like SBI (7.50%), Bank of Baroda (7.50%), and HDFC (7.85%) offer the best home loans for repairs in 2025, with PNB Housing at 7.25% for secured options.
What is the difference between secured and unsecured home repair loans?
Secured home repair loans offer 7.25-8.00% rates with higher limits using property equity, while unsecured loans at 7.50-9.50% require no collateral but have lower limits.
How to calculate EMI for a home repair loan?
Calculate EMI for a home repair loan using the formula EMI = P * r * (1+r)^n / ((1+r)^n - 1); for ₹20 lakh at 7.50% over 10 years, EMI ≈ ₹23,330.
What is the application process for a home loan for repairs?
The application process for a home loan for repairs involves checking eligibility online, selecting loan type, submitting an application with a repair estimate, uploading documents, and getting approval in 5-10 days.
What documents are required for a home repair loan?
Documents required for a home repair loan include ID proof (Aadhaar/PAN), property ownership deed, income proof (salary slips/ITR), repair estimate from a contractor, and address proof.
Can I use a home repair loan for any type of renovation?
Yes, a home repair loan can be used for plumbing, roofing, electrical upgrades, and structural fixes, but banks may restrict luxury renovations; verify with the lender.
Is there GST on home repair loans in 2025?
GST on home repair loans in 2025 is 18% on processing fees, but not on principal or interest; check related property tax details at Ambak GST on Real Estate.
