Home Extension Loans are specifically designed to finance adding space to your existing home, such as building a new room, floor, or balcony. It is a popular choice among many homeowners these days, especially after the pandemic has reshaped the way people work, study, shop, and spend more time at home.
As we go through our life journey, we build our dreams and work towards fulfilling them. Having a beautiful home is certainly one of them. As time passes, you may want a bigger house. Rather than purchasing a new house, you may wish to add new floors or rooms. Apply for a Home Loan for Extension today and extend your house right away.
Features
The purpose of applying for this Loan is to fund the expansion or extension of your existing home, such as adding rooms, floors, and balconies. The Loan amount sanctioned to you by the lender is up to 90% of the home extension cost, subject to your eligibility and other factors. Its tenure is for up to 30 years, and its interest rates are floating and linked to the retail prime lending rate.
Eligibility criteria
Depending on whether you are salaried or self-employed, there are different eligibility criteria to apply for a Loan for a Home Extension. Salaried applicants working in MNCs, government organisations, private limited companies, partnerships, and proprietorship firms are eligible to apply for a Home Extension Loan. Similarly, self-employed individuals, such as businesspeople, sole proprietors, doctors, CA, architects, and consultants, and those working in partnership firms or private limited organisations can apply for this Loan.
Other factors, such as monthly income, location, and credit score, as well as the lender’s policy at the time of the Home Addition Loan application, will also be considered in determining an applicant’s eligibility. The lender considers multiple factors, including your age, income, Loan tenure, credit history, and repayment capacity.
Documents required
You require some common documents which need to be submitted to the lender for verification at the time of Home Extension Loan application, such as PAN Card, employee card, Aadhar Card, Voter ID, driving license, last three months’ salary slips, two years’ Form 16-, and six-months’ bank statements with salary credits for salaried individuals. You also need to submit your ration card, latest electricity bill, and water bill to the lender.
Self-employed applicants applying for a Home Extension Loan need to submit identity proof, the last two years’ ITR computation, CA-audited financials, and primary bank statements of the last six months. You can apply for this Loan after checking your credit report for errors, the lending institution’s eligibility criteria, and the availability of 10% of the Home Loan amount for an upfront payment, since they sanction up to 90% of the Loan amount.
Use the Home Extension Loan calculator to estimate and ensure that your EMIs are affordable and do not exceed 30% to 40% of your salary. Keep your paperwork intact.
Conclusion
The entire process may take three to four weeks, since the property also requires verification. After verification checks and Home Extension Loan approval, you will receive the funds shortly.
