5 June 2026

A renovation loan caters to homeowners seeking to renovate or remodel their properties. It provides funds for various types of renovation work, such as carpentry, demolition, tiling, painting and so forth. Materials and labour for the renovation are also included.

Renovation loans may be used to cover or supplement the entire cost of your home remodelling, or for partial work such as a bathroom or kitchen refresh. But that’s where the extent of such loans end.

You see, even the best renovation loans cannot be used to purchase furniture, appliances and other home amenities – even though these items commonly make up part of the cost of renovating your property.

Furthermore, renovation loans in Singapore are capped at S$30,000 per loan – a rather modest amount, considering the sky-high cost of home remodels these days.

Given such constraints, you may wonder if renovation loans are worth the bother. To answer that question, let’s take a deep dive into renovation loans to find out how they work, with tips for choosing the best renovation loan for your needs. (Spoiler: It may not be a renovation loan).


What is a renovation loan?

In Singapore, a renovation loan refers to a specific bank loan that can only be used to pay for renovating your property. Like a personal loan, renovation loans are available with a range of loan tenors – typically up to five years – and repaid via regular monthly instalments.

Renovation loans are not held in escrow. Instead, the bank will pay the renovation loan to the contractor via cashiers orders on your behalf. You will need to pay any outstanding sums or milestone payments as spelled out in your quotation.

When applying for a renovation loan, you are required to submit an official quotation from a registered interior design firm or contractor. This document should detail the renovation work required, and state clearly the total cost of the work involved. You will also need a copy of your HDB or MCST renovation permit, where applicable. Other standard documents such as personal identification, income documents and proof of ownership should also be prepared.

As mentioned, renovation loans are capped at S$30,000, or 6x of your monthly income – whichever is lower. This limit also applies for joint applications, although the lower monthly income of the two applications will be used instead.


Renovation loans vs personal loans

Given that renovation loans work similarly to personal loans – yet come with more restrictions – you may be wondering what’s the point?

Traditionally, renovation loans offer lower effective interest rates, which gives you better value overall. However, personal loans have become increasingly competitive, offering funding for your home makeover at comparable – and sometimes even lower – interest rates.

See this table for a side-by-side comparison between the two.

Best renovation loans in Singapore

In this section, we will discuss the best renovation loans in Singapore, highlighting various features of different loans to help you find the one that is most suitable for your needs—from low interest rates to need for fast disbursements, we’ve explained below.

Best for low rates

Home renovations are big ticket purchases, commonly costing five or even six figures. At such sums, every percentage point of interest equals a substantial difference in your monthly repayment amount.

We’ve shared about how to choose a personal loan previously, and one of the key considerations is that low interest rates should be among the top features when choosing a loan. This concept applies when choosing a home renovation loan as well.


Though not packaged as a renovation loan, the MariBank Instant Loan indeed, has one of the lowest you can get in today’s market. It comes with an interest rate as low as 1.28% p.a. (EIR 1.92% p.a., accurate as of June 2026). With MariBank Instant Loan, you can essentially enjoy one of the lowest monthly instalment payments, compared to renovation loans of similar size and tenor.

You can get MariBank Instant Loan in as little as 10 seconds, and with no upfront fee!


Best for flexibility

If flexibility matters more than anything, you’ll be better off with a personal loan. Unlike a renovation loan, you can use a personal loan to pay for both renovation works and the appliances you intend to install (such as a new air conditioning system, or a smart home setup).

Another advantage of personal loans is that they do not have an upper limit of S$30,000. Instead, you may borrow up to 4x your monthly income. Some providers allow up to 8x or 10x monthly income for high income earners.


Best for smaller renovations

If you’re looking at a smaller renovation project under S$30,000 – maybe a bathroom refresh, a kitchen remodel, new windows so they finally match – it may make sense to go for a traditional renovation loan. This is because the bank will disburse the renovation loan funds to your contractor or ID via cashier orders, saving you the trouble of managing payments on your own. However, you should consider carefully if the convenience is worth the higher interest charged on renovation loans.



Note that this loan comes with a 2% application fee and a mandatory 1% insurance fee.


Best for fast disbursement

For speedy loan disbursement, renovation loans won’t cut it. They require an official quotation from a contractor or interior design firm, which takes at least a few days to obtain. This means a longer wait before you can receive your funds.

Instead, choose a personal loan, ideally one for which you have already been pre-approved for a certain credit limit. This will allow you to apply for the loan amount you need – and provided it does not exceed your pre-approved limit – you can obtain the funds almost instantly in your account.

One of the fastest ways to get a loan for your renovations is with MariBank Instant Loan. You can apply for the amount you need on your MariBank mobile app. Once approved, your funds will be instantly disbursed to your preferred bank, including the Mari Savings Account.

With SingPass integration, it takes just minutes to apply and get your MariBank Instant Loan.


Key considerations before taking a renovation loan

Total repayment

Besides watching your cost-of-borrowing by comparing EIR, you should also take note of the total amount you repay at the end of the loan. In general, the longer the loan tenure, the more you end up paying in total – this is because interest is being charged over a longer time period.

Therefore it’s a good idea to check how much your total loan repayment would be, using the online calculator that most providers offer on their loan product pages. It might be worthwhile going for a shorter loan tenor to reduce your total repayment, provided you can comfortably meet instalment payments.


Interest rate

You should pay attention to the interest rate on your renovation loan because it determines your borrowing costs. This is especially relevant in today’s market, with loans going for ultra-low interest rates of under 2% p.a.

Choosing wisely will let you enjoy substantial savings on your renovation loan.


Affordability

With interest rates being so low right now, you might be tempted to borrow a larger amount for a more extensive renovation. However you shouldn’t neglect affordability.

This means ensuring that you can comfortably meet the monthly instalment payments – throughout the duration of your loan tenor. If you are planning to change your job, get married, or make other changes with significant financial implications, be sure to plan ahead such that you finish paying off your renovation loan first.


Scope of renovation

Lastly, determine the actual scope of renovation works needed, and match your loan amount as closely as you can. Borrowing too much is a waste, as you’ll be paying interest for nothing. But taking too small a loan is also not great, as it will likely leave you scrambling for cash as your renovation proceeds.

As a general rule, allow 5% to 10% buffer in your renovation budget to cater to mishaps and unforeseen developments. Your cash savings – if available – would be the ideal option for this buffer.


MariBank Instant Loan – For all your renovation needs

Hopefully we’ve convinced you why the best renovation loan may in fact be a personal loan. MariBank Instant Loan is ideally suited to all renovation needs, offering a combination of competitive interest rates, speedy disbursements, and no fees!

Here are the benefits you can enjoy with MariBank Instant Loan:

• Flexible loan options. Choose loan tenors ranging from 3 months to 5 years to suit your plans and needs.
• Instant cash disbursement. Apply digitally via MariBank mobile app, and get your renovation loan in minutes!
• Competitive interest rates. Enjoy low interest rates from 1.28% p.a. (EIR 1.92% p.a., accuratee as of June 2026). There’s no upfront and annual fee, so you save even more!
• Borrow from as low as S$100. Whether you’re getting new appliances, going for a full-blown renovation, or anything in between, borrow just what you need with our low minimum loan amount.

Turn your living space into the home of your dreams. Apply for MariBank Instant Loan now.

Apply for Renovation Today