Balance Transfer
What Is a Home Improvement Loan? Features, Benefits and Eligibility
Aug 14, 2026 | 4 mins read
Make your dream home into reality with Home Loan for up to ₹ 10 Crore* and interest rates starting from 7.75%* p.a. Get up to 90%* of the property value, with tenure from 3 years to 30 years. Experience the ease of an instant home loan application process and manage your finances with our comprehensive home loan online services. Enjoy a fully digitised process, supported by a dedicated relationship manager to assist you at every step of the way. Additionally, you can also get significant tax benefits under Sections 80C and 24 of the Income Tax Act.
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Home Loan for Apartments
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Plot Plus Construction
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Home Loan for Self Construction
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Home Improvement
EMI Calculator For Home Loan
Use the Home Loan EMI Calculator to instantly estimate your monthly instalments and plan your repayment with clarity and confidence.
Preferred loan amount
₹
₹20,00,000
₹10,00,00,000
Interest rate (per annum)
%
7%
15%
Loan tenure (months)
%
36 months
360 months
Estimated EMI
per month- ₹ 36,690
Interest payable
₹52,41, 690
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Home Loan Eligibility & Documents Required
Eligibility Criteria For Home Loan
To qualify for a Home Loan, applicants must meet the following conditions:
Residency:
Indian resident or NRI
Age:
Salaried Individuals: 23 to 70 years (at loan maturity)Self-Employed
Professionals/Non-Professionals: 25 to 70 years (at loan maturity)
Profession:
Salaried employees, self-employed professionals,
and self-employed non-professionals
Income:
Eligibility can be enhanced by adding a co-applicant or verifying
additional income sources, such as rent or spouse income
Documents Required For Home Loan
Check the essential documents required for a Home Loan, including age, address, identity, and income proofs, to ensure a smooth and quick approval process.
Age Proof
Aadhaar Card | PAN Card | Passport
Address Proof
Utility bills (not older than 2 months | Aadhaar Card | Driving License | Passport | Voter ID etc
Photo ID Proof
PAN + any one: Aadhaar / Driving License / Passport / Voter ID / NREGA Job Card / NPR Letter
Income Proof
Salaried: Last 3 months' salary slips, 12 months bank statements, Form 16/ITR. Self-Employed Professionals: Last 2 years ITR with income computation, CA-certified P&L & balance sheets. Self-Employed Non-Professionals: Last 2 years ITR, bank statements, audited financials of firm/company if applicable
Fees & Charges For Housing Loan
Home Loan processing involves the following applicable fees as per RBI and internal guidelines:
Type
Interest Rate & Charges
Processing Fees:
Up to 3% of sanctioned amount + applicable taxes
Login Fees:
Up to Rs.5000 /- (inclusive of applicable taxes) (nonrefundable)
EMI Dishonour/Bounce Charge*
Based on loan amount; ₹500 – ₹2,000
Penal Charge/Late Payment Charge (LPC)
Up to 2% per month on overdue EMI plus applicable taxes (effective Dec 4, 2023)
Asset Valuation Fee
Up to 1% of the loan amount plus applicable taxes
Documentation and repayment setup fee
Up to Rs. 2,000/- + applicable taxes
Interest conversion fee
Floating interest rate to floating interest rate: 0.5% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes
Floating interest rate to a fixed interest rate and vice versa: 1% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxesForeclosure / Full Prepayment Charges
Nil for floating rate loans; Fixed rate loans: up to 3% or 2% on principal outstanding, depending on duration since disbursement
Other Charges
As per the Schedule of Fees and Charges on the website
Home Loan Interest Rate Details
Explore the latest home loan interest rate details to choose the most suitable and affordable loan option for your dream home.
| Customer Type | Effective Rate of Interest* |
|---|---|
| Salaried & Self-Employed | 7.75% p.a. onwards* (Floating) |
| Existing customers switching from floating rate to fixed rate* | 12% p.a. onwards* (Fixed) |
*Rates are indicative and subject to individual credit assessment, including CIBIL score, Fixed Obligation to Income Ratio (FOIR), employment type, and other factors. Refer to the latest RBI Guidelines for updates.
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Types of Home Loans
When you plan to buy, build, or improve your home, you have different loan options to choose from. Here are the main types of Home Loans:
- Home Purchase Loan :
The most common Home Loan, used to buy a ready-to-move-in house or flat. You repay in fixed monthly EMIs. - Home Construction Loan :
Designed for building a new house on a plot you already own. The loan is disbursed in stages as the construction progresses. - Home Renovation Loan :
Useful for repairs or upgrades, such as renovating your kitchen, bathroom, or other spaces with the help of a Home Decor Loan. - Home Extension Loan :
Helps you add more space to your house, like an additional room or floor. - Plot Loan with Self-Construction :
For buying a residential plot and building your home on it. The loan is given for land purchase and later construction. - Home Equity Loan :
Lets you borrow money against the equity in your completed home. It can be used for different financial needs. - NRI Home Loan :
Special loans for Non-Resident Indians (NRIs) who want to buy property in India. - Commercial Property Loan :
For purchasing commercial spaces such as offices or shops to grow your business. - Joint Home Loan :
Taken with a co-borrower, combining incomes to increase eligibility and loan amount. - Home Loan Balance Transfer :
Transfer your existing Home Loan to another lender to benefit from lower interest rates or better terms. Transfer your existing home loan to another lender with a Home Loan Balance Transfer and enjoy lower interest rates or better terms. - Top-Up Home Loan :
Additional loan amount available on top of your existing Home Loan, without end-use restrictions. You can borrow an additional loan amount on top of your existing loan through a Top-Up Home Loan, without end-use restrictions.
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Advantages of Availing a Home Loan
Taking a Home Loan offers many benefits when you plan to buy or build your dream home. Some of the key advantages include:
- Helps in buying your dream home :
You don't need to wait years to save the full amount, as the loan funds most of the property cost. - High loan amount :
You can get financing up to 80-90% of the property value, depending on eligibility. - Flexible repayment tenure :
Choose a repayment period to suit your budget. - Affordable EMIs :
Spread the cost into monthly instalments, making repayment easier. - Tax benefits :
Save on taxes under Section 80C (principal repayment) and Section 24 (interest payment) of the Income Tax Act. - Balance transfer facility :
Option to transfer your loan to another lender for lower interest rates. - Top-up option :
Additional funds available on your existing Home Loan for renovation, extension, or personal needs. - Builds financial discipline :
Regular EMI payments help you manage money better and improve your credit score.
Tips to Improve Chances of Getting a Home Loan
Getting a Home Loan approved depends on your financial profile. Here are some useful tips to increase your chances:
- Maintain a good credit score :
A higher credit score shows that you repay loans on time, making lenders more confident. - Keep stable income proof :
Regular salary slips, bank statements, or audited accounts for self-employed applicants improve eligibility. - Clear existing debts :
Pay off or reduce other loans and credit card dues before applying, as it lowers your debt-to-income ratio. - Choose a realistic loan amount :
Apply for a loan that matches your repayment capacity. Lenders usually finance 80-90% of the property value. - Opt for longer tenure :
A higher tenure reduces EMI, making repayment easier and increasing approval chances. - Show additional income :
Extra income sources like rent, business earnings, or spouse's salary can strengthen your application. - Keep documents ready :
Submitting correct and complete documents avoids delays and increases approval likelihood.
