Loan for Home Expenses

Setting up a new house or renovating your existing home could be expensive. A kitchen redo could set you back by a couple of lakh, and so would the long-pending bedroom makeover. Sometimes, you may have to carry out unforeseen major repairs. Why draw from your savings when you could opt for our personal loan for home improvement with Flexi Hybrid facility.

buying

BUYING

Your home loan may cover only 80% of the total cost. You can take a personal loan for home renovation to cover the remainder of the cost, brokerage, stamp duty, and other related expenses.

renovation

RENOVATION

From time to time, we all want to redo the bedroom or buy a new couch for the living room. As children grow up, they may need a place of their own. You wouldn’t want to hold back and cut corners.

furnishings

FURNISHINGS

At times, furniture, upholstery and lighting is all you need to convert your apartment into a luxury residence. 10 years ago, these things were hard to find. Now, all such things are available easily with a personal loan for home improvement, and you could really splurge.

major repairs

MAJOR REPAIRS

Any home needs major repairs once-in-five years. You may need to hire an architect and engage civil contractors. These repairs could range from a lakh to 10 lakhs depending on the size of the home. A personal loan for house repair could make it easy.

smart home

SMART HOME

Your friend just converted his apartment into a smart home and got all the fancy stuff like voice-controlled lighting, wi-fi heating and remote security. How about going for a smart makeover?

3 unique variants of our personal loan

  • Flexi Term Loan

    Imagine you take a loan of Rs. 2 lakh for a term of 24 months. For the first six months, you pay the regular equated monthly instalments (EMIs). By now, you would have repaid about Rs. 50,000.

    Suddenly, you have an unforeseen need for Rs. 50,000. All you need to do is to go to My Account and withdraw Rs. 50,000 from your Flexi Term Loan account. Three months later, you just got your bonus of Rs. 1,00,000 and would like to pay back a part of your Flexi Term Loan. This time again, all you need to do is go to My Account and pay back a part of your Flexi Term Loan.

    During all this while, your interest is automatically adjusted, and you are paying interest only on the outstanding amount at any point of time. Your EMI consists of both principal and adjusted interest.

    Unlike in the case of other personal loans, there are absolutely no fee/ penalty/ charges for paying back or withdrawing from your Flexi Term Loan account.

    This variant is ideal for today’s lifestyle, wherein managing expenses can get unpredictable. You can pick this variant if you are looking for the best personal loans in India with flexible terms.

  • Flexi Hybrid Loan

    This is another variant of our personal loan that works exactly like Flexi Term Loan. The only difference is that, for the initial period of the loan, your EMI will only consist of the applicable interest. For the remaining period, the EMI will consist of the interest and principal components.

    Click here for a detailed description of how our Flexi Hybrid Loan works.

  • Term loan

    This is like any other regular personal loan. You borrow a certain amount of money, which is divided into equated monthly instalments that consist of both principal and the applicable interest.

    There is a fee applicable for repaying your term loan before the completion of your loan tenure.

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Features and benefits of our personal loan

Features and benefits of our personal loan 00:40

All you need to know about our personal loan

 Watch this video to know everything about our personal loan

  • 3 unique variants

    3 unique variants

    Pick the loan variant that suits you best: Term loan, Flexi Term Loan, and Flexi Hybrid Loan.

  • No part-prepayment charge on Flexi Term Loan

    No part-prepayment charge on Flexi Term Loan

    Repay a part of your loan in advance, at no extra cost. You can part-pay as many times as you want.

    Read about Flexi Term Loan

  • Loan of up to

    Loan of up to Rs. 40 lakh

    Manage your small or large expenses with loans ranging from Rs. 20,000 to Rs. 40 lakh.

  • Manage your loan easily with repayment options

    Convenient tenures

    Manage your loan easily with repayment options ranging from 6 months to 96 months.

  • Approval in just

    Approval in just 5 minutes

    Complete your entire application online from the comfort of your home or wherever you are and get an instant personal loan with fast approval.

  • Money in your account

    Money in your account in 24 hours*

    Your bank account will be credited with your loan amount within 24 hours* or, in some cases, on the same day of approval.

  • No hidden charges

    No hidden charges

    Our fees and charges are mentioned clearly on this page itself and also on our loan documents. We advise you to read these in detail before applying.

    Know about interest rates and charges

  • No guarantor or collateral needed

    No guarantor or collateral needed

    You do not need to provide any collateral such as gold ornaments, property papers, or have someone stand as a guarantor.

  • *Terms and conditions apply.

    These features make this one of the best personal loans in India. Still haven’t found what you’re looking for? Click on any of the links at the top of this page.

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Eligibility criteria and documents required

Anyone can apply for our personal loan online, as long as you meet five basic criteria mentioned below. If you meet all the eligibility criteria of our online personal loan, you will need a set of documents to complete your application process. With our online personal loan, you can get an instant approval for up to Rs. 40 lakh. Meet the easy personal loan eligibility parameters and complete your basic documentation to avail the money you need within 24 hours* of approval.

Eligibility criteria

  • Nationality: Indian
  • Age: 21 years to 80 years*
  • Employed with: Public, private, or MNC
  • CIBIL score: 685 or higher
  • Monthly salary: Starting Rs. 25,001, based on the city you live in

Documents required

  • KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
  • PAN card
  • Employee ID card
  • Salary slips of the last 3 months
  • Bank account statements of the previous 3 months
  • Utility bill of electricity and piped gas

*Higher age limit is applicable at the time of loan maturity.

How to apply for a personal loan

Video Image 00:49
   

Step-by-step guide to apply for a personal loan

  1. Click on ‘APPLY’ at the top of this page to open our online personal loan application form.
  2. Enter your 10-digit mobile number and the OTP sent to your phone.
  3. Fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
  4. Now, click on ‘PROCEED’ to visit the loan selection page.
  5. Enter the loan amount that you need. Choose from our three personal loan variants –Term, Flexi Term, and Flexi Hybrid.
  6. Choose the repayment tenure – you can select tenure options of 6 months to 96 months and click on ‘PROCEED’.
  7. Complete your KYC and submit your application.

Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents.

Personal loan interest rates and applicable charges

Type of fee

Applicable charges

Rate of interest

11% to 38% p.a.

Processing fees

Up to 3.93% of the loan amount (inclusive of applicable taxes).

Flexi Fee

Term Loan – Not applicable

Flexi variant - A fee will be deducted upfront from the loan amount (as applicable below)

  • Up to Rs. 1,999/- for loan amount less than Rs. 2,00,000
  • Up to Rs. 3,999/- for loan amount from Rs. 2,00,000 to Rs. 3,99,999
  • Up to Rs. 5,999/- for loan amount from Rs. 4,00,000 to Rs. 5,99,999
  • Up to Rs. 7,999/- for loan amount from Rs. 6,00,000 to Rs. 9,99,999
  • Up to Rs. 8,999/- for loan amount from Rs. 10,00,000 to Rs. 14,99,999
  • Up to Rs. 9,999/- for loan amount from Rs. 15,00,000 to Rs. 19,99,999
  • Up to Rs. 10,999/- for loan amount from Rs. 20,00,000 to Rs. 24,99,999
  • Up to Rs. 11,999/- for loan amount from Rs. 25,00,000 to Rs. 29,99,999
  • Up to Rs. 12,999/- for loan amount of Rs. 30,00,000 and above

*All the Flexi charges above are inclusive of applicable taxes

*Loan amount includes approved loan amount, insurance premium, and VAS charges.

Bounce charges

In case of default of repayment instrument, Rs. 700 - Rs. 1,200 per bounce will be levied.

Pre-payment charges

Full Prepayment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment.
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as of the date of full prepayment.

Part-prepayment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) of the principal amount of the loan prepaid on the date of such part-prepayment.
  • Not Applicable for Flexi Term Loan (Flexi Dropline) and Flexi Hybrid.

*Foreclosure will be processed post clearance of first EMI

Penal interest

Delay in payment of monthly instalment shall attract penal interest at the rate of 42% per annum applicable on the monthly instalment outstanding, from the respective due date until the date of receipt of the monthly instalment.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount.

Mandate rejection charges

Rs. 450 per month from the first month of the due date for the mandate rejected by customer’s bank until the registration of new mandate.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline): Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount during the initial tenure. Up to 0.295% (inclusive of applicable taxes) of total withdrawable amount during subsequent tenure.

Broken period interest / Pre-monthly Instalment interest

"Broken Period Interest/Pre-monthly Instalment interest" shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 - Over and above the period of 30 days from the date of disbursement of the Loan:

Method of recovery of Broken Period Interest/Pre-monthly Instalment interest:

  • For Term Loan: Deduct from disbursement or added in first EMI, as applicable.
  • For Flexi Term Loan: Added to first instalment amount
  • For Hybrid Flexi Loan: Added to first instalment amount

Scenario 2: Less than period of 30 days from the date of disbursement of the Loan:

Interest on first instalment will be charged for actual number of days.

Switch fee Up to 1.18% of the loan amount (inclusive of applicable taxes).
Switch fee is applicable only in case of switch of loan. In switch cases, processing fees will not be applicable.

Note: Additional cess if any, will be applicable to all charges according to state law.

*Terms and conditions apply.

For Micro Finance Loans, please note below:
Purchase of any non-credit product by the microfinance borrowers is purely on a voluntary basis. Minimum interest, maximum interest, and average interest are 13%, 38%, and 35.71% per annum respectively. Part pre-payment and Foreclosure charges are NIL.

Frequently asked questions

What is a personal loan for home renovation?

Getting a Bajaj Finserv Personal loan is a simple way to pay for the costs of your home renovations including repairing, interior or expanding your home. These personal loans have simple eligibility criteria and offer quick disbursal.

What are the document requirements to get a personal loan for home expenses?

The following documents must be submitted while applying for a personal loan for home improvement:

  • Passport-size photographs
  • KYC documents – Aadhaar, PAN, voter’s ID, driving license, passport
  • Bank account statements for the previous 3 months
  • Salary slips for the last 3 months
Can I take a personal loan to renovate my house?

Yes, anyone can apply for a personal loan to renovate their homes. You can use this loan to pay for remodelling, furnishings, plumbing, tiling, flooring, and any other home expenses.

What is the rate of interest on a personal loan for home expenses?

Bajaj Finserv Personal Loan for home expenses is offered at a competitive interest rate ranging from 11% onwards. Our fees and charges are written clearly in our loan documents. We advise you to review these thoroughly before applying.

Is personal loan for home renovation tax-free?

Personal loans for home renovation or house renovation loan are not tax-free. The interest paid on personal loans is generally not eligible for tax deductions. It's essential to consult a financial advisor for specific information about tax implications related to personal loans.

Does a personal loan for home improvement come under 80C?

No, personal loans for home improvement or home improvement loans do not fall under Section 80C of the Income Tax Act in India. Personal loans are not eligible for these benefits.

What is the difference between home loans and personal loans for home renovation?

Home loans and personal loans for home renovation differ in their purpose and terms. Home loans are secured loans, specifically designed for property-related expenses, offering lower interest rates and longer repayment periods. Personal loans or home improvement loans are unsecured, and have higher interest rates and shorter terms, making them suitable for smaller home renovation projects.

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