Home Extension Loan

If you want to expand your house, the amount you need can be substantial. This is where a home extension loan can help you. You can get a loan for home extension from various leading lenders. A loan for house extension is a loan specifically for expanding your existing home's structure to add living space, such as building extra rooms or a new floor. 

It is a secured loan which uses your property as collateral. This is different from a home improvement loan, which is for renovating or refurbishing an existing space without altering the structure. These loans can help to build a larger house to accommodate a growing family, add office space, or enhance your property value. Keep reading to explore more about these loans, their interest rates, documents needed, etc. 

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. 

A home extension loan EMI calculator is an online tool that uses the loan amount, interest rate, and tenure to instantly calculate your EMI for a home extension loan. It helps homeowners plan their finances by showing the monthly payment required and the total interest paid. This further allows them to compare different loan scenarios before committing to a lender. 

To understand your monthly repayment clearly, you can use the house loan EMI calculator on Bajaj Markets. This easy online tool helps you check your EMI in seconds, plan your finances better, and gives you quick, accurate results. Here’s how you can make the most of it: 

• Enter the home loan interest rate offered by your lender 

• Add the principal amount you plan to borrow 

• Choose a loan tenure that matches your repayment comfort 

• Click on ‘Calculate Now’ to get your home loan EMI instantly 

• Review the EMI amount, total interest outgo, principal, and the complete repayment figure displayed on screen 
   

As the Bajaj Markets home loan EMI calculator is free to use, you can try different combinations and find a loan that fits your specific needs. 

To apply for a home extension loan on Bajaj Markets, you need to meet a few basic conditions and keep some key documents ready: 

• You must be a resident of India

• Salaried applicants should be between 21 and 67 years old

• Self-employed applicants must fall within the age range of 23 to 70 years

• Salaried professionals should have at least 3 years of work experience

• Self-employed individuals must show a minimum of 5 years of stable business operations

Applying for a home extension loan on Bajaj Markets is quick, simple, and completely digital. Just follow these easy steps:

• Step 1: Click on the ‘Check Offer’ button on this page

• Step 2: Fill in the online form with your basic personal details

• Step 3: Enter the loan amount you need and choose a suitable repayment tenure

• Step 4: Submit the completed form for verification

Before applying for a home extension loan, here are some key things you should know: 

• Structural vs. Renovation: Understand that such a loan is for structural expansions like adding rooms, floors, etc. Making cosmetic repairs like painting may require a different type of loan, e.g., a home renovation loan. 

• Accurate Budgeting: Get detailed cost estimates from contractors and budget accurately. Include a contingency fund of about 10-20% of your budget for unexpected expenses. 

• Loan Amount and LTV: Lenders typically finance up to 80-90% of the extension cost. The final amount will depend on your repayment capacity, income, and the property's value after the extension. 

• Loan Tenure and EMIs: Choose a repayment tenure that you can comfortably manage without straining your monthly budget. A longer tenure means lower EMIs but more total interest paid. Use an online home loan EMI calculator to plan your finances effectively. 

• Compare Lenders: Research and compare hme loan interest rates (fixed vs. floating), processing fees, and any hidden charges from different banks and housing finance companies. 

• Tax Benefits: You may be eligible for tax deductions on both the interest paid and the principal repayment under relevant sections like Section 24(b) and Section 80C of the Income Tax Act. 

• Prepayment Terms: Check the lender's policy on prepayment and foreclosure charges, as flexible options can help you reduce your loan burden if you have extra funds.

• Disbursement Process: Loan funds are often disbursed in stages corresponding to the progress of the construction work. Check with your lender before applying.