Home renovation loan Morocco 2026: 5 banks compared

1. 1. Renovation loan 2026: who and what for

A renovation loan finances any improvement, extension or equipment operation on an existing home. Do not confuse it with a mortgage (purchase) or a consumer loan (free use).

• Interior renovation: kitchen, bathroom, flooring, paint, electrics
• Extension: extra room, floor, veranda, garage
• Sustainable equipment: solar panels, insulation, AC, lift
• Compliance: electrics, plumbing, accessibility
• Energy renovation: eligible for subsidised green loan 0.5%

Unlike a standard personal loan, the renovation loan requires a named quote from a contractor or craftsman. The bank releases funds in tranches as the works progress, either directly to the provider or upon presentation of invoices.

Eligible audience in 2026: owner-occupiers, landlord owners (renovation before letting allowed), and even tenants under conditions (signed landlord waiver + non-structural works). MREs can subscribe remotely via a legalised power of attorney.

2. 2. The 5 banks compared in 2026

Overview of offers active in Q2 2026. Rates vary by guarantee (mortgage or not), borrower profile and term.

Three criteria differentiate the offers: maximum ceiling, mortgage requirement, and green-loan eligibility. Attijariwafa and CIH dominate the mortgaged segment, while BCP and BMCE-BOA remain more flexible for small unsecured files.

3. 3. With or without mortgage: which to choose?

The choice shapes the whole file: amount available, rate, term and extra costs.

The unsecured renovation loan targets small budgets (up to 500,000 MAD). Fast to set up (10 to 15 days), no notary fees, but the rate is higher (5.5 to 7.5%) and the term capped at 60 months. Convenient to renovate a bathroom or redo a kitchen.

4. 4. Three real-life renovation loan cases

To visualise the actual financial effort, here are three numerical scenarios based on 2026 rates.

These simulations rely on an average 6% rate without mortgage and 5% with mortgage, excluding borrower insurance (count +0.3% of capital per year). Minimum income required follows the 33% maximum debt ratio rule.

5. 5. Required documents: the quote is mandatory

This is the item that distinguishes a renovation loan from a consumer loan. Without a named quote, no bank will process the file.

• ID card front/back of borrower (and co-borrower if applicable)
• Last 3 payslips + employment certificate (salaried)
• Last 3 bank statements
• Tax notice or J form for self-employed
• Named contractor quote (RC + ICE + VAT)
• Land title or registered lease
• Co-ownership authorisation if vertical building
• Building permit if extension/elevation

The quote must be detailed, signed by a registered contractor or craftsman (RC + ICE mandatory), and include VAT. Banks reject overly generic quotes. In vertical co-ownership, the syndic's authorisation is required for any works affecting common areas or the façade.

6. 6. Procedure: how to get your renovation loan

From quote to first monthly payment, count 2 to 6 weeks depending on whether the guarantee is mortgaged or not.

The procedure follows a standard pattern. Funds are released in tranches (typically 30%, 30%, 40%) upon presentation of intermediate invoices, which protects the borrower from over-paying and the bank from misuse of funds.

7. 7. Daam Sakane Works: 30,000 MAD state subsidy

The Daam Sakane works component, expanded in 2026, finances renovation of social housing and middle-class homes.

• Beneficiaries: owners of social or middle-class housing acquired before 2020
• Amount: 30,000 MAD paid in 2 tranches
• Eligible works: waterproofing, electrics, plumbing, façade, accessibility
• Procedure: file with MHU + quote + before-works photos
• Processing time: 60 to 90 days
• Stackable with bank renovation loan

The direct 30,000 MAD subsidy is paid by the Ministry of Housing to owners of social housing (value ≤ 250,000 MAD) undertaking rehabilitation works: waterproofing, electrical compliance, plumbing, accessibility. The aid is stackable with a bank renovation loan.

8. 8. Green loan: subsidised rate at 0.5%

For energy renovation (solar panels, insulation, heat pump), Bank Al-Maghrib applies a 0.5% subsidy on the standard rate.

• Residential photovoltaic (panels + inverter + batteries)
• Thermal insulation (roof, walls, double glazing)
• Heat pump and solar water heater
• Dual-flow ventilation
• Rainwater harvesting
• EV charging stations

The green loan scheme, expanded in 2026, now covers all residential energy efficiency works. Concretely, a renovation loan at 5.5% drops to 5.0%, a saving of about 1,200 MAD per 100,000 MAD borrowed over 5 years.

9. 9. Cross-sell: damage-to-works insurance (DT)

Often overlooked, damage-to-works insurance protects the project owner against defects for 10 years.

For any site > 100,000 MAD, DT insurance (the Moroccan equivalent of the French dommages-ouvrage) is strongly recommended. It covers hidden defects, water ingress and structural cracks appearing after acceptance. Cost is 2 to 3% of the works amount, deductible via the renovation loan itself at Attijariwafa and CIH.