Definition of home improvement loan

consumer loan, usually secured by collateral or a mortgage, taken out to finance alterations, remodeling, or structural renovations to an existing dwelling. These loans are generally short-term, but may be for longer periods.

a loan, usually secured by a mortgage on the home, used to pay for major remodeling, reconstruction, or additions to the home.

Example: In order to add an extra bedroom, remodel the kitchen, and construct a swimming pool in the backyard, the Holmeses took out a home improvement loan from their local savings and loan association.