A renovation loan is one of the needs-based personal instalment loan you can take up with the financial institution of your choice. As they are special-purpose loans meant to help you finance your home renovations, the interest on renovation loans tend to be lower than personal loans. However, renovation loans come with restrictions on the type of renovations that can be paid with the loan. This is because of the lower interest rate you enjoy, and the fact that the money will be disbursed to the contracting party directly.
Loan repayment tenures usually range between 1 to 5 years.