What is a Renovation Loan in Singapore?
A renovation loan is a type of personal loan specifically designed to fund home improvement works. Unlike regular personal loans, renovation loans are earmarked for approved renovation activities and disbursed directly to licensed contractors.
They typically offer lower interest rates than personal loans but are capped at SGD 30,000 or 6x your monthly income (whichever is lower).
Calculate your monthly repayment with our renovation loan calculator Singapore.
Best Renovation Loan Rates Singapore 2026
| Bank | Flat Rate | EIR (approx) | Max Loan | Max Tenure | Processing Fee |
|---|---|---|---|---|---|
| UOB Renovation Loan | 3.68% p.a. | ~7.0% | SGD 30,000 | 5 years | Waived |
| DBS Renovation Loan | 3.88% p.a. | ~7.4% | SGD 30,000 | 5 years | SGD 100 |
| OCBC Renovation Loan | 4.18% p.a. | ~7.9% | SGD 30,000 | 5 years | SGD 100 |
| Maybank Renovation Loan | 4.38% p.a. | ~8.3% | SGD 30,000 | 5 years | Waived |
| Hong Leong Renovation | 3.80% p.a. | ~7.2% | SGD 30,000 | 5 years | SGD 88 |
Always compare using EIR — a flat rate of 3.68% translates to approximately 7.0% EIR since interest is charged on the original principal throughout the tenure.
What Does a Renovation Loan Cover?
✅ Covered (Paid to Contractor)
- Built-in carpentry (wardrobes, kitchen cabinets, TV console)
- Flooring (tiles, vinyl planks, parquet, marble)
- Painting and wallpaper
- Bathroom renovation (fittings, tiles, waterproofing)
- Electrical works and rewiring
- Plumbing works
- False ceilings and partition walls
- Windows and grilles
- Air conditioning installation
- Gate and main door replacement
❌ Not Covered (Must Pay Cash)
- Freestanding furniture (sofa, bed frame, dining table)
- Home appliances (refrigerator, washing machine, TV)
- Soft furnishings (curtains, rugs)
- Decorative items
- Plants and outdoor items
DBS Renovation Loan — Full Review
DBS offers one of the most popular renovation loans in Singapore due to its competitive rate and easy application through the DBS/POSB app.
Key features: - Flat rate from 3.88% p.a. (EIR ~7.4%) - Maximum SGD 30,000 or 6x monthly income - Tenure 1-5 years - Disbursement directly to contractor (or partial upfront) - Apply online via DBS app — approval in 1-3 days
Best for: Existing DBS/POSB customers who want convenience.
Calculate your DBS renovation loan repayment with our renovation loan calculator.
OCBC Renovation Loan — Full Review
Key features: - Flat rate from 4.18% p.a. (EIR ~7.9%) - Minimum loan SGD 5,000 - Flexible repayment — can make partial prepayments - Disbursed in stages aligned with renovation milestones
Best for: Those who need milestone-based disbursements for better cash flow management.
UOB Renovation Loan — Full Review
Key features: - Lowest flat rate: 3.68% p.a. (EIR ~7.0%) - No processing fee - Up to 5-year tenure - Joint application available (higher loan quantum)
Best for: Those seeking the lowest EIR — UOB offers the most competitive rate in 2026.
How to Apply for a Renovation Loan
Documents Required:
- NRIC (both sides)
- Latest 3 months payslips OR CPF contribution statement
- Latest income tax Notice of Assessment
- Renovation quotation from licensed contractor (HDB-registered for HDB flats)
- Proof of property ownership (title deed or HDB letter)
Application Process:
- Get a quotation from a licensed contractor
- Apply online or visit bank branch
- Submit documents — approval typically within 1-3 business days
- Sign loan agreement
- Bank disburses funds to contractor (or your account for some banks)
- Renovation commences
Joint Application — How to Get a Higher Loan
If you need more than your 6x income limit allows, apply jointly with your spouse:
- Your income: SGD 4,000/month → individual limit: SGD 24,000
- Spouse income: SGD 3,500/month
- Joint limit: based on combined income (SGD 7,500 × 6 = SGD 45,000, capped at SGD 30,000)
Joint application maximises your loan at the SGD 30,000 cap with better affordability.
Renovation Loan vs Personal Loan — Which is Cheaper?
| Renovation Loan | Personal Loan | |
|---|---|---|
| Flat rate | 3.68-4.38% p.a. | 3.4-6.0% p.a. |
| EIR | ~7.0-8.3% | ~6.5-11.0% |
| Usage | Renovation only | Any purpose |
| Disbursement | To contractor | To you |
| Max amount | SGD 30,000 | Up to 6x income |
Renovation loans are typically cheaper than personal loans and should be your first choice for home improvement works.
Tips to Get Approved Faster
- Get a detailed quotation — banks want itemised quotes from licensed contractors
- Apply early — approval takes 1-5 days, renovation cannot start before disbursement
- Use a HDB-registered contractor for HDB flat renovations (mandatory)
- Apply to 2 banks — acceptance of one does not obligate you
- Keep loan amount within your TDSR — check TDSR calculator first
Frequently Asked Questions
Can I use a renovation loan for furniture?
No. Renovation loans are only for structural and built-in works. Freestanding furniture must be purchased separately using cash, credit card, or a personal loan.
Do I need to show receipts after getting a renovation loan?
Most banks disburse directly to the contractor. However, if disbursed to your account, you may need to show invoices/receipts as proof of renovation works.
Can I get a renovation loan if I am renting the property?
No. Most banks require proof of ownership. Renovation loans are only available to property owners.
What happens if my renovation costs more than SGD 30,000?
Pay the excess in cash or consider a personal loan for the additional amount. Some homeowners also use their credit card (with 0% instalment plans) for furniture and appliances.
Calculate Your Renovation Loan
Use our renovation loan calculator Singapore to compare UOB (3.68%), DBS (3.88%), and OCBC (4.18%) rates side by side. See your exact monthly payment and total interest cost for any renovation budget.