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House Repair Loan: Smart Way to Finance Your Home Repairs

December 02, 2023 • 362 views

The popularity of house repair loan has increased in the last few years. Various reasons have persuaded house repair loan in India, especially with the constant new construction projects, climate changes impacting the exteriors and interiors of the house, etc. Also, with a specially designed loan for house repair, you have complete control over the funds and understanding about utilising the funds in the right direction. Let us understand more about house repair loans. 

What are House Repair Loans?

House Repair Loans are specialised financial products designed to cater to homeowners needing funds for home improvements or repairs. These loans can be availed from lenders such as non-banking financial companies (NBFCs), online lenders, or other lending institutes. They are distinct from home loans primarily used for purchasing property. House Repair Loans are more flexible and can be used for various purposes, from minor repairs to major renovations.

Why are House Repair Loans Important?

In India, maintaining a house can be challenging due to the dramatic climate changes that can impact structures' longevity. House Repair Loans, hence, become essential in homeownership by addressing the following needs:

  • Timely repairs and renovations prevent a home from deteriorating, preserving its value over time.
  • Home improvements can enhance the comfort and safety of your living space, providing a better quality of life.
  • Addressing minor issues promptly can prevent them from becoming major, costly problems.

House Repair Loans provide homeowners with the necessary funds without depleting their savings, ensuring that homes remain safe, comfortable, and aesthetically pleasing.

Ways to Finance Your Home Improvements

Personal Loans

Personal Loans are a popular choice for financing home repairs in India due to their flexibility and quick disbursement. They don’t require collateral, making them accessible to most homeowners.
For instance, Indian kitchens face the wrath of heavy utensils, oil and curry stains. If you need to renovate your kitchen, a Personal Loan can provide the funds with a repayment plan that suits your budget. Moreover, these loans can cover a variety of repair works, from plumbing issues to extensive remodelling. The interest rates vary, but you can secure a favourable rate with a good credit history.

Credit Cards

Using credit cards for home repairs is feasible for short-term or smaller projects. Many credit card companies in India offer reward points and cashback on such transactions, which can be beneficial. However, it's important to be cautious of high interest rates and the potential for accumulating debt, especially if the balance is not paid off quickly.

Use Your Savings

While using savings is the most cost-effective method, balancing it with the need to maintain an emergency fund is crucial. Indian households often use savings for home repairs but should ideally do so for smaller, less costly projects to avoid depleting their financial safety net.

Also Read - Why Consider a House Renovation Loan for Your Next Home Improvement Project?

Benefits of Personal Loan for Home Repairs

Opting for a House Repair Loan comes with several advantages:

Quick Processing

In India, where time is often of the essence, especially before the onset of the monsoon season or in the event of sudden structural damage, the quick processing of Personal Loans is a significant advantage. For example, if your house needs urgent roof repairs before the rainy season, the swift approval and disbursement of a Personal Loan can be a lifesaver. Financial institutions in India typically process these loans within a few days, and in some cases, customers can access funds within 24-48 hours of application approval.

No Collateral

One of the key features of Personal Loans in India is that they are unsecured they do not require collateral. This is particularly beneficial for those who may not have significant assets to pledge as security. For instance, a young professional who has recently purchased a home and needs funds for interior renovations can apply for a Personal Loan without the stress of providing collateral, which they might not have.


Personal Loans offer a high degree of flexibility, which is crucial for varying financial situations. Borrowers have the liberty to choose the loan amount and the repayment tenure based on their financial capability. For example, suppose you are a homeowner who needs Rs.5 lakh for kitchen remodelling. You can opt for a loan amount that suits your needs and select a repayment period (say three years) that aligns with your monthly budget, ensuring that the EMI (Equated Monthly Installment) is manageable.

Improves Property Value

Investing in home repairs can significantly increase the value of your property. Well-maintained properties fetch higher resale values in a rapidly growing real estate market. For instance, renovating your home by adding modern amenities or upgrading the interiors can make your property more attractive to future buyers, thereby increasing its market value substantially.

Also Read - Get a Quick Personal Loan for Home Interior


Selecting the right financing option for your home repairs is a decision that should be tailored to your specific needs and financial situation. Whether it's through Personal Loans, credit cards, or your savings, each option has its merits. Personal Loans, in particular, offer a balance of flexibility, accessibility, and potential tax benefits, making them a popular choice for many homeowners. Remember, investing in your home not only ensures a comfortable living environment but also contributes to preserving and enhancing its long-term value.

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We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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