Interest rates for home renovation loans are floating and repo-linked, starting from 7.90% p.a. for high-credit-score borrowers (750+), generally lower than personal loans due to property collateral. Rates have stabilized post the RBI's pause on further cuts, with public sector banks and HFCs passing on benefits from the 2025 reductions.
| Bank/HFC | Starting Interest Rate (p.a.) | Max Tenure | Max Financing (LTV) | Processing Fee | Key Notes |
|---|---|---|---|---|---|
| PNB Housing Finance | 7.90% onwards | Up to 15 years | Up to 80-90% | Up to 0.50% | Floating rate, minimal docs, quick approval |
| Bajaj Housing Finance | 7.85% onwards | Up to 20 years | Up to 80% | Nominal | High sanction up to ₹15 Crore, self-employed friendly |
| HDFC Bank | 8.15% onwards | Up to 15 years | Up to 80% | Up to 0.50% | Digital process, balance transfer options |
| SBI | 8.50% - 9.85% | Up to 15 years | Up to 75-80% | 0.35% + GST | Women concessions, PMAY integration for extensions |
| ICICI Bank | 8.75% onwards | Up to 15 years | Up to 80% | Up to 0.50% | Instant in-principle, NRI eligible |
| LIC Housing Finance | 8.75% - 9.00% | Up to 15 years | Up to 75% | Up to 0.50% | Affordable for smaller amounts, reliable service |
| Axis Bank | 8.75% - 9.50% | Up to 15 years | Up to 75% | Up to 1% | Premium features, top-up facility |
| Bank of Baroda | 8.45% onwards | Up to 15 years | Up to 80% | Min ₹8,500 - Max ₹25,000 | Competitive for salaried, repo-linked benefits |
Rates are indicative as of January 2026; final offers depend on CIBIL score, income stability, and property valuation. For a ₹20 lakh loan at 8.00% for 10 years, EMI is approximately ₹24,300, with total interest around ₹9.16 lakh—savings of ₹2-3 lakh compared to personal loan rates (10-15%)
