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How to renovate your home without using up savings

Key Takeaways

A home renovation loan lets you upgrade your home without dipping into your savings, making it ideal for repairs, interiors, and essential improvements.
Renovation costs vary widely, so planning your budget, getting estimates, and deciding what truly needs upgrading is key.
Your EMI depends on the loan amount, tenure, and the home renovation loan interest rate.
Personal loans for home improvement offer quick, collateral-free funds to all, while top-up home loans are available to existing home loan borrowers.
IDFC FIRST Bank’s FIRSTmoney offers a host of benefits, making renovation funding smoother and stress-free.

17 Apr 2026 by Team FinFIRST

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A home always evolves with you. Maybe you’re dreaming of a brighter kitchen, a more spacious wardrobe, a refreshed bathroom, or even a quiet corner for work. Renovation isn’t just about repairing old spaces, but about shaping your home to match the way you live today.

The ideas usually come fast. The budgeting? Not so much.

Many people keep postponing upgrades because they assume it will empty their savings. But you don’t always have to wait for the “right time.” With the right planning and financing, you can start improving your home without compromising your financial comfort. This is where a home renovation loan can help. It gives you access to funds to upgrade your home without using your savings, with repayment through fixed EMIs.

Festive home renovation with personal loan from IDFC FIRST Bank

Personal Loan for Home Renovation: Festive Makeover with IDFC FIRST Bank | IDFC FIRST Bank

How a personal loan can help you for home renovation

What is a home renovation loan?

A home renovation loan is a type of personal loan used to fund home repairs, upgrades, or improvements, repaid through fixed EMIs over a chosen tenure without requiring collateral.

Is a home renovation loan a good idea?

It can be a good option if you want to upgrade your home without breaking savings and can comfortably manage the EMI within your monthly budget.

Why do people take a home renovation loan?

People take a home renovation loan to upgrade their home without using savings, manage large renovation costs through EMIs, and complete improvements without delaying plans.

Here’s why many people prefer a personal or house repair loan for renovation:

Helps grow your property value: Money spent on improving your home often boosts the property’s market price far more than the amount invested.
Strong long-term returns: Even a moderate renovation budget, say ₹15 lakh, can lead to a higher overall appreciation in your home’s value over time.
Possible tax advantages: While personal loans don’t give tax breaks by themselves, using them for renovation may help you claim deductions under Section 24(b).
Predictable EMIs: Fixed interest rates mean steady monthly payments, making it easier to plan your cash flow.
Freedom to spend as needed: You’re not required to justify every expense. You can use the funds for repairs, interior design, furniture, appliances, or any other renovation costs.

Common renovation expenses you can finance

House renovation can range from small fixes to major makeovers, and a personal loan for home improvement can help cover it all. You can use the funds for:

Structural repairs (leaks, flooring, wiring)
Kitchen and bathroom upgrades
Painting, tiling, and carpentry work
Lighting, fixtures, and appliances
Modular kitchen or wardrobe installations
Interior décor or full home refreshes

Typical renovation costs vary based on scope and quality of materials. Minor touch-ups are less expensive, while full remodels can be pricey. A home renovation loan helps spread these costs without draining your savings.

When should you consider a home renovation loan?

When renovation costs are high and savings are insufficient

When you want to avoid breaking investments or emergency funds

When you need funds quickly for urgent repairs

When you can comfortably repay EMIs without financial stress

How does a home renovation loan work?

A home renovation loan works like a personal loan where you borrow a fixed amount, receive funds upfront, and repay it through monthly EMIs over a chosen tenure without providing collateral. The process is usually fully digital, with quick approval and fast disbursal.

For instance, with IDFC FIRST Bank’s FIRSTmoney , you can apply online and get a home renovation loan in just five steps. Here’s how -

Click on ‘Apply Now’
Register using your mobile number and confirm your basic/personal details to check your eligibility
Select the loan amount of your choice starting from ₹50,000, depending on your approved loan offer, and choose flexible repayment terms
Link your bank account where you want the funds disbursed
Complete the KYC video verification using your physical PAN card

What does renovation really cost in India?

Typical price ranges across common renovation types that give you a realistic starting point before you begin planning:

Renovation type	Approximate expense
Full home makeover	₹15,00,000 – ₹50,00,000
Kitchen upgrade	₹1,50,000 – ₹5,00,000
Bathroom redo	₹60,000 – ₹2,50,000
Single-room renovation	₹40,000 – ₹2,00,000
Exterior improvement	₹1,00,000 – ₹5,00,000
Structural fixes	₹2,00,000 – ₹10,00,000
Cosmetic touch-ups	₹20,000 – ₹1,00,000
Energy-efficient upgrades	Cost varies depending on choices

What are the EMI and interest expenses

When you take a home repair loan, two things shape your monthly payments: the interest rate and the loan tenure. Simply put, the interest is the cost of borrowing money, and the EMI is the fixed amount you pay every month that covers both principal and interest.

Home renovation loan interest rates in India typically range between 10% and 24% per annum, depending on your credit profile, income, and lender.

At IDFC FIRST Bank, FIRSTmoney personal loan for home renovation starts from about 9.99% per annum. This rate is calculated on a reducing balance basis, meaning the interest you pay reduces as your loan principal shrinks over time.

For example, if you borrow ₹5,00,000 at around 9.99% interest for 5 years, your monthly EMI would be in the region of ₹10,600–₹10,700, though exact figures depend on your final rate and tenure choice.

Using IDFC FIRST Bank’s personal loan EMI calculator can help you plan your finances better before committing, and provides a clear picture of what you’ll pay month after month.

Fees and foreclosure rules

When you take a home improvement loan, a few standard charges usually come along with it. Most lenders apply a processing fee, typically ranging from 0.25% to 2% of the loan amount. This covers basic administration, paperwork, and verification. There are other loan charges involved, too. These vary by lender but should be considered when budgeting for your renovation.

At IDFC FIRST Bank, things are refreshingly easy. You can repay your home renovation loan early without any foreclosure charges. There are no penalties, no conditions, just clear off the outstanding amount whenever you're ready.

Personal loan vs other renovation funding options

A personal loan is fast, flexible, and collateral-free. However, if you already have a home renovation loan, a top-up loan might offer better long-term value. Here’s a simple comparison among various funding options available to help you decide:

Parameter	Personal loan	Home loan top-up	Savings	Credit cards
Suitable For	Easy funding for all eligible borrowers	To get extra funds on an existing home loan	Small repairs, minor décor updates, since savings might be limited	Small purchases (appliances, fixtures) because the credit limit might be limited
Interest rate	Competitive interest rates	Lower than personal loans	No interest cost	Higher among all options
Documentation	Minimal, fast digital process	Moderate, linked to existing home loan	None	Minimal
Sufficiency	Covers most mid- to large-scale renovations with higher limits	Can cover even big renovations, depending on your eligibility	Often enough for minor fixes or smaller upgrades if savings are limited	Works for small purchases, but not enough for major renovation work because of the limited credit limit

Pros and cons of home renovation loans

Pros

No need to use savings

Quick access to funds

Fixed EMIs for easy planning

Cons

Interest cost over time

EMI obligation for several months

Risk of over-borrowing

Tips to plan renovation loans without hurting future finances

Taking a personal loan for home improvement without a plan can lead to overshooting your budget or borrowing more than you actually need. A little structure goes a long way. Here’s how to stay financially smart:

Identify each area of the house that needs improvement (e.g., smart kitchen fittings, modular wardrobes, smart lighting, balcony seating, wooden flooring)

Get cost estimates from contractors or vendors

Calculate the total estimated cost for the complete renovation

Decide how much you can manage from personal funds and how much needs financing

Use IDFC FIRST Bank’s personal loan EMI calculator to check EMI options for different loan amounts

Review your monthly budget and select a loan amount that fits comfortably within it.

Pay EMIs on time to keep your credit score healthy and qualify for better loans in the future.

Following these steps ensures that your home renovation loan is based on actual needs, not guesswork, and keeps your finances steady even after the renovation glow-up.

Eligibility criteria and documentation needed for a home renovation loan

With FIRSTmoney, the following requirement should be fulfilled:

Should be an Indian citizen
Minimum age: 21 years, maximum age: 60 years
Salaried or self-employed
CIBIL score above 730

At IDFC FIRST Bank, the application process is fully digital, so there’s no need to upload documents. Just keep your Aadhaar and PAN details handy, and use your physical PAN card to finish the video KYC.

Why is IDFC FIRST Bank’s FIRSTmoney ideal for renovation expenses?

Here’s why FIRSTmoney personal loan should be your first choice for managing home renovation expenses:

Instant disbursal within 10 minutes
Fully digital onboarding
Flexible loan amount going up to ₹10 lakhs
Additional loans are available to fulfil extra funding needs
Repay at your convenience
No foreclosure charges

Fulfill your renovation dreams without the money stress

Home upgrades don’t have to drain your savings or slow down your plans. When you plan smart and choose the right financing, transforming your space becomes simpler and far more manageable. A home renovation loan from FIRSTmoney can make the journey easy with competitive interest rates starting at 9.99%, quick access to funds in 10 minutes, flexible EMIs, and zero foreclosure charges.

If you’re ready to refresh your space, this might be the perfect moment to begin. Your dream home makeover is just a few steps away.

Frequently Asked Questions

Is a personal loan a good option for home renovation?

Yes, a personal loan can be a good option for renovation if you want quick funds without pledging collateral and with affordable EMIs. With FIRSTmoney, the process is flexible, fast, and you can get instant funds up to ₹15 lakh for everything from interiors to repairs without any usage restrictions.

What will be the EMI for a ₹5 lakh renovation loan?

The EMI for a ₹5 lakh home renovation loan depends on the interest rate and tenure. For example, at around 9.99% for 5 years, the EMI for a ₹5 lakh personal loan from FIRSTmoney by IDFC FIRST Bank will be approximately ₹10,621 per month.

Should I choose a personal loan or a home loan top-up for renovation?

A personal loan is faster and ideal for large-scale renovation, but a home loan top-up usually offers lower interest rates and longer tenures. If you already have a home renovation loan, a top-up can be more cost-effective. If not, a personal loan is the quicker choice.

What is the maximum amount I can borrow?

With FIRSTmoney personal loan, you can borrow from ₹50,000 up to ₹15 lakhs, depending on your eligibility.

What documents are required for a home renovation loan?

You only need your PAN and Aadhaar number to apply for a FIRSTmoney personal loan from IDFC FIRST Bank. Further, you need to display your original PAN card during the video KYC process.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.