Be it a flat or a bungalow, everyone feels the need to live in bigger spaces at some point of time in their lives. When you are living with your friends or only with your spouse, you don’t feel the need to get extra space in your house. But as you progress in your life, personally and professionally, you start feeling the need for that extra space or room in your house. Be it marriage, children or living with your parents/in-laws, you feel the requirement of additional space.
Here you have three options: build/buy a bigger house in the beginning, buy/build a new house now when the need arises or simply expand your current house. All three options can be a little expensive but expanding your current house is the most feasible, easy and cheapest among all.
You can expand your house by tanking an easy home extension loan. The funds taken for this loan can be used for adding an extra room or floor, building a new balcony or other constructional changes in your existing house. A home extension loan is different from a home improvement loan which is specifically taken for renovating, repairing or refurbishing your home to upgrade it to a contemporary design or to enhance its comfort.
Features and benefits of Home Extension Loan:
- A home extension loan is a type of secured mortgage loan. The loan applicant has to mortgage his/her property to take an extension loan.
- You can replay the home extension loan by opting for easy EMI plans.
- Banks and NBFCs grant 75% and 90% loan amount of the construction estimate, depending on the approximate cost of construction.
- One can apply for a home extension loan individually or jointly with a family member.
- If you already have a home loan/LAP on your current property, you can opt for a second mortgage loan or top-up loan.
- Banks and NBFCs in India offer a maximum of 20 years tenure for home extension loans.
- Banks and NBFCs have strict eligibility criteria when it comes to granting home extension loans. They consider the applicant’s KYC details, credit score, financial history, ability to pay back the loan and current financial obligations. The eligibility of property is also checked by the lender. The age of the property, its legalities are checked before granting the home extension loan.
- One can benefit from tax deductions by taking a home extension loan.
- Banks and NBFCs require specific documents when it comes to approving a home extension loan. Below is the list of documents you should gather if you are applying for a home extension loan:
- Proof of identity and residence
- Proof of income
- Proof of employment
- Bank statement (6 months)
- Photographs of the applicants
- Title deed & encumbrance certificate of the property.
- Copy of approved plans
- Construction estimate
- A cheque for processing fees
Click here to apply for a quick home extension loan!
