You need to weigh the advantages and limitations of both types of loans to arrive at a conclusion. Home extension loans are considered far better for home renovation due to the following reasons: The interest rates levied on home extension loans are usually lower than on personal loans They are high-value loans, unlike personal loans They come with longer tenures of up to 30 years The eligibility criteria for home loans are easier as compared to personal loans They offer more tax benefits than personal loans They offer great flexibility to borrowers when it comes to repayment