If you're looking to renovate your home, then you can consider applying for a home improvement loan. This will ensure you don't burn a hole in your pocket. An individual in metro cities can apply for such a loan of up to Rs 10 lakh and, in other cities, the limit is up to Rs 6 lakh. Any salaried or self-employed individual can apply. The interest rate falls between 6.85% and 10.99% and tenures can go up to 30 years. According to section 24b of the Income Tax Act, 1961, interest payment up to Rs 30,000 are deductible per financial year for borrowers.