According to the Individual Income Tax Law of People's Republic of China (PRC), the loan interest obtained by individuals engaged in business activities is one of the taxable items of individual income tax, and individual income tax shall be paid according to law. However, if the loans obtained by individuals for business activities are used for family housing decoration, they can enjoy the personal income tax reduction and exemption policy and do not need to pay personal income tax.

Therefore, the bank does not need to pay personal income tax if it issues renovation loans to private individuals for family housing renovation. However, if the loan is not used for family housing decoration, you need to pay personal income tax in accordance with the regulations.