Home Extension Loan

If you want to expand your house, the amount you need for this is huge. Here, a home extension loan can help you. You can get a loan for home extension from various leading lenders. Let’s explore home extension loans, their interest rates, and documents needed.

*Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Listed below are some ways in which a home extension loan can be beneficial to you:

• Flexible Tenure

Most lenders offer home extension loans for a tenure of up to 30 years. The tenure has an impact on your monthly payouts and the total cost of your loan. Select a loan period that enables you to repay the loan comfortably. 

• Balance Transfer

If your home loan repayment is straining your finances, you can consider transferring your loan to another lender. If timed well, you can save a large sum with the low home extension loan interest rates provided by the new lender. You may also be eligible to get an extended tenure and opt for flexible repayment options. This makes repaying the loan much easier and more efficient. 

• Tax Benefits

Similar to a home loan, you can get tax benefits on a home extension loan as per the Income Tax Act, 1961. Under Section 80C, you can get an exemption of up to ₹1.5 Lakhs on your taxable income with this loan. 

Furthermore, you can get an additional tax benefit of ₹2 Lakhs on the interest paid on a home extension loan. This can help you save a considerable amount on tax. You can then direct the saved money towards fulfilling your other financial requirements.  

• Affordable Insurance Policy

Some lenders may offer home insurance policies at lower premiums. This enables you to secure your property against potential damages. These include theft, fire, and so on. It ensures that in the case of an unfortunate event, you are financially protected.

Here is the list of some common documents needed when applying for a home extension loan:

• Income proof

• ID proof

• Address proof

• Proof of age

• Proof of employment or business

• Home extension documents like encumbrance certificate, project plan etc

• Estimated cost quotation

• Duly filled application form
  
  

Check the complete list of home loan documents required to ensure a smooth application process.