Home renovation is an exciting journey — but financing it smartly is crucial. Whether you’re remodeling your kitchen, upgrading interiors, or extending your living space, a personal loan can make your home improvement dreams easier to achieve.
Two leading lenders, L&T Finance and Bajaj Finserv, offer attractive personal loan options for home renovation.
In this blog, we compare L&T Finance vs. Bajaj Finserv personal loans side by side to help you choose the best fit for your renovation plans.
Why Choose a Personal Loan for Home Renovation?
Instead of exhausting your savings, a personal loan allows you to:
- Spread the renovation cost into easy EMIs
- Fund large upgrades (modular kitchens, flooring, painting) without upfront stress
- Retain your emergency savings untouched
- Manage your cash flows better
Many lenders today offer dedicated personal loans that fit home renovation needs with minimal documentation and quick approvals.
About L&T Finance Personal Loan for Home Renovation
L&T Finance is a trusted NBFC with strong presence across Tier-2 and Tier-3 cities. Their personal loans are flexible and customer-friendly.
- Loan Amount: ₹50,000 to ₹30 lakh
- Interest Rate: Starting from 11% p.a.
- Processing Fees: Up to 3% + taxes
- Tenure: Flexible (based on borrower eligibility)
- Disbursal: Within 24–48 hours
- Prepayment Option: Allowed (with charges)
Perfect for medium to large renovation projects, especially for salaried or self-employed individuals looking for quick, hassle-free funding.
About Bajaj Finserv Personal Loan for Home Renovation
Bajaj Finserv is one of India’s largest NBFCs, known for digital lending speed and flexible loan structures.
- Loan Amount: ₹20,000 to ₹40 lakh
- Interest Rate: Starting from 11% p.a.
- Processing Fees: Up to 4% + taxes
- Tenure: Up to 96 months
- Disbursal: Within 24 hours after approval
- Prepayment Option: Part-prepayment allowed
Offers specialized Flexi Loan options, allowing you to borrow, repay, and reborrow as needed — ideal for ongoing, phased renovations.
L&T Finance vs. Bajaj Finserv Personal Loan – Home Renovation Comparison
| Feature | L&T Finance | Bajaj Finserv |
| Loan Amount | ₹50,000 to ₹30 lakh | ₹20,000 to ₹40 lakh |
| Interest Rate | 11% onwards | 11% onwards |
| Processing Fee | Up to 3% + taxes | Up to 4% + taxes |
| Tenure | Flexible based on eligibility | 6 to 96 months |
| Disbursal Speed | 24–48 hours | Within 24 hours |
| Prepayment Option | Allowed with charges | Allowed (depending on type of loan) |
| Special Features | Strong Tier-2 presence, simple structure | Flexi Loan with interest-only EMIs available |
RupeeQ Tip: How Loan Tenure Impacts EMI for Home Renovation
Choosing the right tenure is crucial when planning a home renovation loan.
Longer tenures reduce EMI but increase total interest paid, while shorter tenures mean higher EMIs but lower overall cost.
| Loan Amount | Tenure | Interest Rate | Approximate EMI | Total Interest Payable |
| ₹5 lakh | 3 years | 12% p.a. | ₹16,607 | ₹1.98 lakh |
| ₹5 lakh | 5 years | 12% p.a. | ₹11,122 | ₹1.67 lakh |
| ₹5 lakh | 7 years | 12% p.a. | ₹8,841 | ₹2.42 lakh |
✅ Expert Insight:
If you can afford a slightly higher EMI, opt for a shorter tenure.
For example, choosing 3 years over 7 years saves you ₹44,000 in total interest!
Always balance EMI affordability with total repayment cost — this decision can save you significantly over the loan lifecycle.
Eligibility Criteria for Home Renovation Loans
| Criteria | L&T Finance | Bajaj Finserv |
| Age | 21–58 years | 21–67 years |
| Employment | Salaried or self-employed | Salaried or self-employed |
| Minimum Income | As per internal policy (typically ₹20,000+) | ₹22,000 to ₹35,000 (city-based) |
| Documents | ID proof, address proof, income proof | ID proof, address proof, income proof |
Both lenders require basic documents, making the process simple and quick.
When to Prefer L&T Finance vs. Bajaj Finserv for Home Renovation?
Prefer L&T Finance if:
- You live in a Tier-2 or Tier-3 city
- You want a straightforward fixed personal loan
- You prefer lower processing fees
- You value localized service and easy in-person assistance
Prefer Bajaj Finserv if:
- You need flexibility in withdrawals during an ongoing renovation (Flexi Loan)
- You want longer repayment options (up to 96 months)
- You prefer faster 24-hour digital disbursals
- You are comfortable with online-only processes
Important: Neither lender is a universal winner — it depends entirely on your renovation budget, flexibility needs, and repayment comfort.
Example Scenario
Suppose you are renovating your home with a budget of ₹7 lakh.
| Particulars | L&T Finance | Bajaj Finserv |
| Loan Amount | ₹7 lakh | ₹7 lakh |
| Interest Rate | 12% p.a. | 12% p.a. |
| Tenure | 5 years | 5 years |
| EMI | ₹15,571 | ₹15,571 |
| Processing Fee | ~₹21,000 + taxes | ~₹28,000 + taxes |
| Flexibility | Fixed | Flexi Loan (pay interest-only EMIs initially) |
Result:
If your renovation involves phased expenses (e.g., furniture now, painting later), Bajaj Finserv’s Flexi Loan may suit you better.
If you have a clear one-time expense, L&T Finance’s lower processing fees may save upfront costs.
FAQs – L&T Finance vs. Bajaj Finserv for Home Renovation Loans
Q1. Can I get a loan without collateral for home renovation?
Ans: Yes, both L&T Finance and Bajaj Finserv offer unsecured personal loans — no collateral required.
Q2. Which lender gives faster loan disbursal?
Ans: Bajaj Finserv typically disburses within 24 hours, while L&T Finance usually disburses within 24–48 hours.
Q3. Can I prepay my renovation loan early?
Ans: Yes, both lenders allow prepayment with applicable charges.
Q4. What should I choose if I want to renovate my home in phases?
Ans: Bajaj Finserv Flexi Loan option may be more suitable for phased expenses.
Q5. Is there a processing fee for both lenders?
Ans: Yes, up to 3% + taxes for L&T Finance, and up to 4% + taxes for Bajaj Finserv.
