As you get better settled in life, and your family expands, your needs, wants, and life goals also undergo a major change. For instance, you may now wish to expand the space to your home to accommodate the expanding family needs. A home extension is a feasible option for satiating a growing family’s need for a larger home. To ensure your family gets the additional space as desired, various home loan providers now offer home loans, including home extension loans, at attractive home loan interest rates. With home loan EMI calculators being provided by lenders, borrowers can now easily personalize their home loan as per their home extension needs. Let us understand everything about home extension loans and how it helps to create additional space for our homes.
What is a Home Extension Loan?
Home extension plans entail huge costs like payments to contractors, builders, purchase of raw materials, and much more. A home extension loan is a good option available at affordable home loan interest rates, which the borrower can consider. A home extension loan is a type of home loan, which will fulfill your requirements to modify your existing home structure, like adding a room, a balcony, setting up a garden, and so on in the most satisfactory way. Now, with home loan EMI calculators available, a borrower can easily customize their home extension loan amount and tenure as per their budget requirements.
Key Features of Home Extension Loan
Common benefits of a home extension loan are provided below, though the same could differ from lender to lender.
- Affordable home loan interest rates with flexible EMI repayment options
- Higher eligibility value, viz, loan-to-value ratio available up to 100% of home extension loan amount required or 90% of the property value, whichever is less.
- Home loan tenure up to 30 years available
- Home Loan EMI calculators offer customized home extension loans.
- Available to both salaried and self-occupied individual
- Most home loan providers offer a balance transfer facility.
- Tax benefits are available under Section 24 of the Income Tax Act, 1961 for home loan interest rates, with a yearly deduction of up to Rs. 30,000 available
- Easy and hassle-free home loan application procedure with minimal documentation
- Minimal processing fee charged.
Eligibility Criteria for Home Extension Loan
Though eligibility features for a home loan could differ between lenders, common eligibility criteria are mentioned below:
- Age of borrower to be between 21 – 58 years
- Minimum monthly salary/income required – Rs.20,000
- Minimum work experience required – 2 years
Key Documents Required
- Duly filled and signed home loan application form
- ID proof like Aadhaar Card/PAN Card/Voter Id
- Address proof like Electricity Bill/Passport/Ration Card
- Income proof of salaried/self-occupied individual
- Latest Bank Statement
- Property documents
Steps to apply for a Home Extension Loan
Follow the below common steps for applying online (could differ between lenders) for getting your home loan effortlessly:
- Visit the official website of the home loan provider
- Verify your home loan eligibility with the home loan EMI calculator
- Choose the home loan amount and tenure
- Provide your home loan application
- Upload paperless documents online
- On approval, the home loan amount gets directly credited to your bank account
Conclusion
Now, borrowers need not worry about the high cost of home extension as a home extension loan provides various benefits to the home loan borrower. Key lenders provide home extension loans at attractive home loan interest rates. With their home loan EMI calculators, borrowers get to customize their home loan terms, making the overall home extension loan process a seamless one.