Home Extension Loans - Everything You Should Know

While living in your home is one thing, adjusting in it is another. A lot of people who even though live in their own homes, find the size of it to be inappropriate. As the size of the family grows, so does the need for a bigger space. This can be resolved either by moving to a larger house or going for house extensions.While the former may sound tempting to you, financials are a huge consideration in the same. However, even when you opt for a house extension, you will need some financial assistance, especially if you already have a home loan. home extension loans can easily be done by opting for home extension loans that help you make the necessary alterations to your existing dream home.

Home extension loans are additional loans that can be taken to make any structural or architectural changes in your existing home so that space adjustments can be made. You can take a home extension loan to add a floor or a room or increase the size of the existing layout.

• Proof of income, address, and identity
• Photographs
• An estimate of projected changes
• Encumbrance certificate of the underlying property and title deed

1. Tenure: Home extension loans come with a maximum tenure limit of 20 years.
2. Documentation: These are secure loan types since your existing home serves as security. The documentation involved in home extension loans is minimal because of their type and can be procured from the same lending company through which you have taken the home loan . Some of the key required documents are:
3. Interest rates: Different banks and financial institutions have different interest rates for home extension loan. However, in most cases, it is the same rate as that of a home loan.
4. Tax benefits: Home extension loans also fall under the same category of home loans when it comes to tax benefits. Under Section 80C, a deduction on up to ₹1.5 lakhs is allowed.

Any individual or group can apply for a home extension loan. However, there are a few things that need to be kept in mind while doing so. These are:

• If the house is co-owned by two or more individuals, then all of them need to be present while opting for this loan.
• Family members who are not the co-owners of the house can become the co-applicants.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.