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Personal Loan

Boost your property rent by upgrading with a home renovation loan

Key Takeaways

A home renovation loan helps you fund smart upgrades to boost rental appeal, without draining your savings.
Simple eligibility checks, fixed EMIs, and flexible tenures help you get the right home improvement loans.
Always borrow thoughtfully by estimating ROI, avoiding overspending, picking the right tenure, and accounting for fees before finalising your loan.
IDFC FIRST Bank’s FIRSTmoney personal loan can be used for home renovations and offers quick digital approvals for loan amounts of up to ₹15 lakhs at competitive rates, with zero foreclosure charges.

27 Mar 2026 by Team FinFIRST

Home Renovation Loan to Increase Rental Income

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Are you planning to rent out your extra flat for additional income? Your place might need some love with fresh paint, a smarter kitchen layout, and a few small fixes to make it actually attractive for tenants. A simple home renovation and you can boost your property’s rental prospects.

That’s exactly where home remodel loans step in. They give you a structured way to fund the upgrades tenants care about while keeping your cash flow steady, even before the first month’s rent comes in.

Avoid bigger repair bills with a smart home renovation loan

Festive home renovation with personal loan from IDFC FIRST Bank

Make festive home upgrades stress-free with a personal loan for home renovation

Why small upgrades matter and how they boost rental income

Tenants judge a place instantly, and even a few small upgrades can transform how your home looks and feels. Brightly painted walls, better lighting, basic kitchen or bathroom fixes, and minor structural repairs often create a big impact without a full renovation.

These upgrades aren’t just cosmetic; they directly affect your earning potential by:

Justifying a higher rent

Cutting vacancy time

Attracting better tenants

Avoiding last-minute repair negotiations.

What’s the typical home renovation cost in India

Before applying for home repair finance, you should know that renovation expenses vary significantly, as every home, city, and project is different. Your material choices, labour rates, and the extent of work all influence the final number. Having a ballpark estimate helps you decide what to tackle now and what to wait on.

Below are typical price ranges to help you plan realistically:

Renovation type	Approximate cost
Complete home makeover	₹15,00,000 – ₹50,00,000
Kitchen upgrade	₹1,50,000 – ₹5,00,000
Bathroom renovation	₹60,000 – ₹2,50,000
Single-room revamp	₹40,000 – ₹2,00,000
Exterior improvements	₹1,00,000 – ₹5,00,000
Structural repairs	₹2,00,000 – ₹10,00,000
Cosmetic fixes (paint, polish, lighting)	₹20,000 – ₹1,00,000
Efficient-energy upgrades	Varies based on choice and scale

What renters actually pay in top cities: Furnished vs unfurnished

If you’re planning upgrades, it helps to know what tenants are willing to pay for a furnished space Below is a list of average rent prices as taken from 99 Acres. For more details regarding individual listings, please refer to their website.

Here’s a quick snapshot of average rents in popular rental pockets:

City and area	Unit type	Monthly furnished rent	Monthly unfurnished rent
Bangalore (Koramangala)	1 BHK	₹28,000	₹17,000
Mumbai (Andheri East)	2 BHK	₹55,000	₹38,000
Delhi (Saket)	1 BHK	₹26,000	₹16,500
Pune (Kharadi)	2 BHK	₹32,000	₹22,000
Chennai (Velachery)	1 BHK	₹20,000	₹13,000

How does a personal loan for home improvement work

A personal loan for home improvement lets you upgrade or repair your home without dipping into your savings. The process is simple and mostly digital, so you can start your renovation sooner.

Here’s how it typically works:

1. Plan your renovation

Start by estimating the cost of repairs or upgrades, whether it’s painting, kitchen remodelling, plumbing fixes, or structural improvements. This helps you decide the loan amount you need.

2. Check your eligibility

The lender evaluates your income, credit profile, and repayment capacity before approving the loan. Common eligibility criteria include:

Being a salaried individual aged 21-60 years

Having a healthy credit score (710+ for IDFC FIRST Bank’s FIRSTmoney personal loan)

Basic verification through documents like ID proof, bank statements, and income proof.

With FIRSTmoney personal loan by IDFC FIRST Bank, you don’t need to upload documents. Just provide your PAN and Aadhaar number during application and complete video KYC by showing your original PAN card.

3. Quick loan disbursal

Once approved, the loan amount is credited directly to your bank account in as little as 10 minutes so you can begin your renovation without delays.

4. Easy monthly repayment

You repay the loan through fixed EMIs, making it easier to manage your monthly budget while your home upgrade takes shape.

5. Flexible tenure options

Choose a repayment tenure that keeps your EMIs comfortable and aligned with your financial goals. With FIRSTmoney you can get a loan tenure between 9 to 60 months.

6. Faster digital process

Online personal loans like FIRSTmoney offer quick approvals, competitive interest rates, and a transparent application process, making them a convenient way to fund home improvements.

How EMIs work: A quick example

Let’s say you take a ₹10,00,000 home renovation loan at an interest rate of around 9.99% for 5 years. Your EMI would come to roughly ₹21,240 per month, depending on the final rate you offered and tenure.

Using IDFC FIRST Bank’s personal loan EMI calculator makes this even easier. It gives you a clear month-by-month breakdown so you can plan cash flow confidently before committing to the loan.

Smart borrowing tips for home remodel loans

Alittle planning before you borrow can save you from cash-flow stress later.

Focus on upgrades that actually help increase rent or reduce vacancy

Avoid spending more than what similar rentals in your area can justify

Choose a tenure where the EMI feels manageable alongside the expected rent

Keep a small buffer, since renovation costs often exceed the estimate

Apart from the interest rate, take processing fees and other charges into consideration to understand the real cost

If you may prepay later, pick a lender with low or zero foreclosure charges

How to get home renovation loan with FIRSTmoney

If you’re planning upgrades, IDFC FIRST Bank’s FIRSTmoney personal loan makes borrowing surprisingly simple with its digital-first process, enabling you to access funds quickly.

Get up to ₹15 lakhs as a personal loan for home improvement within 10 minutes

Competitive interest rates starting around 9.99% p.a. for eligible customers

Zero foreclosure charges if you decide to clear the loan early

Flexible tenures and EMI date options to match your expected rental income

On-demand loans to get additional funds if renovation crosses the budget, without re-applying from scratch

No paperwork or document uploads required

If you want to handle your home makeover without slowing down your cash flow, IDFC FIRST Bank’s FIRSTmoney makes the entire renovation journey easier and more predictable.

Frequently Asked Questions

Do home renovation loans offer tax benefits?

You may be able to claim deductions on the interest paid, depending on the nature and purpose of the renovation.

What renovation work can a home remodel loan cover?

You can use a home renovation loan for all kinds of home upgrades, including kitchen improvements, bathroom fixes, structural repairs, and basic aesthetic updates.

What is the processing fee for home repair finance?

IDFC FIRST Bank FIRSTmoney personal loan charges processing fees starting at 0%* for select loan amounts (TnC apply).

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.