With time, as your family expands, you may feel the need to add more space to your home for a comfortable living. To cater to such needs, various housing finance companies offer Home Extension Loan to provide customers with financial assistance as per the need.
Features and Benefits of Home Extension Loan
Mentioned below are some of the salient features and benefits linked with Home Extension Loan.
- Attractive interest rates
- Generous Tax benefits
- High loan-to-value ratio of up to 100% of the extension value or 90% of the property value, whichever is lower
- Longer tenure of up to 30 years
- Availability of balance transfer facility (offered by most of the leading providers)
- Easy and simple documentation
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Home Extension Loan Interest Rate & Processing Charges
The table below shows Home Extension Loan interest rates and processing charges for the leading providers.
|Provider Name||Interest Rate||Processing Charges*|
|HDFC Bank||8.00% onwards||0.50% of the loan amount+Applicable Tax|
|DHFL||9.75% onwards||Rs.5,000 onwards +Applicable Tax|
|Indiabulls||8.99% onwards||Up to 2.00% of loan Amount+Applicable Tax|
|Tata Capital||11% onwards||Depends on the loan amount|
Home Extension Loan Eligibility Criteria
Here are some of the pre-requisites to be eligible to apply for a Home Extension Loan.
Maximum: 70 years
|Nature of Work||Salaried/Self-Employed|
|Credit Score||750 or above|
Over and above this, there are several other factors like an applicant’s income, liabilities, assets owned, etc., which are evaluated by the provider to determine the eligibility of a customer.
Following are the documents required in order to apply for a Home Extension Loan.
- Duly filled application form
- Age proof
- Income proof/Bank Statement
- Address proof
- Property documents
- Estimated extension cost quotation
Note: This list is non-exhaustive. Additional documents may be required based on the applicant’s profile and the provider’s requirement.
How to Apply for Home Extension Loan
Customers can apply online for Home Extension Loan through Paisabazaar.com by simply following the below-mentioned steps.
- Go to Home Extension Loan section at paisabazaar.com
- Fill out the required field and agree to the given terms & conditions
- Enter your personal and loan-related details
Now, few eligible loan options will appear. Compare and apply for a home loan that suits your requirements.
Q1. How is the EMI calculated?
The monthly EMI depends on the loan amount, interest rate, and repayment tenure. You can use Paisabzaar’s EMI calculator to calculate EMI in advance before applying for a Home Extension Loan.
Q2. What is the security required to avail Home Extension Loan?
The security required for Home Extension Loan may vary from lender to lender. However, in most cases, the property to be extended is kept as collateral.
Q3. What are the tax benefits linked with Home Extension Loan?
Under Section 24 of the Indian Income Tax Act, 1961, Home Extension Loan provides tax benefits on the interest component. You can avail a deduction of up to Rs. 30,000 per annum.