India, with a population exceeding 1.1 billion, emphasizes housing as a crucial facet of its development. Housing, habitat development, and environmental factors are pivotal in the country’s business and developmental goals. The Aga Khan Agency for Habitat (AKAH) addresses global housing needs, focusing on a research study to review existing housing finance models for home renovation in India. The study analyzes state and central-level housing programs, schemes, and redevelopment models, including financing for individual home improvements and renovations in older communities. The study aims to assess India’s housing sector performance, considering demand and existing financing options across income groups. The goal is to design and pilot-test a suggested financing model in Maharashtra and Gujarat. Simple random sampling was employed, using both primary (collected through personal interviews) and secondary data (from published and unpublished sources). The study reveals a need for improving loans for home improvement, as most of the existing banks do not have policy regarding this despite a market demand. An evident gap exists in the market for financing home improvement loans, with no bank or institution addressing this issue. Home improvement loans, alongside home loans, are seen as a solution to establish a robust housing system and develop the best habitat in India. The report underscores the necessity of establishing an effective market system to ensure equal access to comfortable and sufficient housing for all citizens in need. The focus remains on contributing to the broader goal of creating an egalitarian housing landscape in India, emphasizing the relevance of home improvement loans in achieving this objective.