How does a loan for extensions operate?

It works in a similar manner as a home loan. You can apply for a loan for a home extension and use it for the following purposes:Renovate your houseAdd more spaces to itConstruct new roomsExtend the existing roomsMake structural changes to your houseBoth salaried and self-employed individuals can apply for a home extension loan, given that they fulfill our eligibility criteria. They can then repay the loan amount with interest in easy EMIs.

What kind of documentation is needed to apply for a home extension loan?

The documents required for a home extension loan are usually the same as that for a regular home loan. They include:Age proof - A copy of the passport, driving license, birth certificate, PAN card, or school leaving certificatePhoto identity proof - A copy of the voter ID card, Aadhaar card, passport, or driving licenseIncome proof - Salary slips, bank statements, or Form 16A processing fee cheque issued from the salary account

For property that isn’t entirely paid off, am I still eligible for a home extension loan?

It can be taken by anyone who wishes to make structural changes to their house and can fulfill the lender’s eligibility criteria. However, you can take a mortgage loan on a property for one time only. So, if your property is still on loan, you won’t be able to take a new loan against it.

How much money can I borrow in total with a home extension loan?

The maximum loan amount you can borrow depends upon several factors, including your current age, monthly income, credit score , employment stability, and the property’s market value, among others. With Tata Capital, you can avail of a home extension loan of up to Rs. 5 crores and meet all your financial requirements without any hassles.

What is the normal home extension loan repayment period?

The repayment period is the duration for which you are required to pay your EMIs. The longer your repayment period is, the lower will be your EMI amount. With Tata Capital, you can choose a repayment tenure of up to 30 years for your home extension loan. This allows you to make sure that your monthly EMIs remain within your financial capability.

How long does it take to process a home extension loan application?

Home extension loan applications are usually processed quickly by lenders as they involve minimal documentation. At Tata Capital, we ensure our customers don’t have to wait for long to get access to financing. Our housing loan applications are processed as soon as we receive them. You can enjoy instant approvals and get the loan amount in your bank account within a few working days.

What happens if I don’t make my payments on my home extension loan?

It’s recommended to pay your loan EMIs within the due dates. Failing to pay your EMIs on time has several disadvantages. First, your lender may levy an EMI bounce charge on you, and second, it may hamper your credit score and hurt your chances of getting a loan in the future. In case you default on your home extension loan, you may face legal implications, and the lender can even seize your property.

What charges are involved with a home extension loan?

Apart from the interest rates, certain other charges are levied on home extension loans. These include processing charges, foreclosure charges, EMI bounce charges, legal charges, and collection charges, among others. At Tata Capital, we provide them with zero hidden charges and very nominal processing fees. Click here to get the complete list of our fees and charges.

Which is preferable for home renovation: a personal loan or a home extension loan?

You need to weigh the advantages and limitations of both types of loans to arrive at a conclusion. Home extension loans are considered far better for home renovation due to the following reasons:The interest rates levied on home extension loans are usually lower than on personal loansThey are high-value loans, unlike personal loansThey come with longer tenures of up to 30 yearsThe eligibility criteria for home loans are easier as compared to personal loansThey offer more tax benefits than personal loansThey offer great flexibility to borrowers when it comes to repayment

Can I use my home extension loan to buy a car or settle my debts?

No. A home extension loan is strictly provided for a home renovation or extension. It cannot be used for other purposes, such as buying a new car or settling your debts. A personal loan can be a better option in this respect.

How long does it take to pay off a home extension loan?

The time taken by you to repay your home extension loan depends on its tenure. At Tata Capital, we allow you to repay your loan as per your income pattern and repayment capability. You can choose a suitable tenure of up to 30 years for your loan repayment. You can even choose to pay your loan through part payments or bullet EMIs.

What is the interest rate of a home extension loan?

The interest rate varies from one lending institution to another. Usually, interest rates range between 10% and 14% per annum in India. However, at Tata Capital, we provide home extension loans at the most competitive interest rates, starting from just 7.75% per annum. Moreover, you can get the lowest interest rate based on your age, monthly income, and credit score.

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Home Loan
Home Extension Loan

Home Extension Loan

Home Extension Loan by Tata Capital

A home extension loan can help you meet all your financial obligations for the extension of your existing house.

At Tata Capital, we provide a loan for home extension with easy eligibility criteria and minimal documentation. Our home extension loan application process is simple, and you can repay us at your convenience. Additionally, our house extension loan interest rates are very competitive, starting from just 7.75% per annum. You can apply for a house extension loan with us and give your family the additional space that they deserve.

Loan amount offered

₹ 2 lakhs to ₹ 5 crores*

Loan tenure

Upto 30 years

Interest rate starting @

7.75%* p.a.

View Rates & Charges

Advantages of Tata Capital Home Extension Loan

High Loan Amount

With Tata Capital’s home extension loan, you can get a loan for house extension of up to Rs. 5 crores. With such a high loan amount, you can make the most of your house extension plan. We ensure that finances never stop you from designing your home the way you want it to be.

Easy Eligibility Criteria

When you apply for a loan for extension of house, you don’t have to worry about fulfilling stringent eligibility requirements. Our house extension loans come with very easy eligibility criteria in terms of age, income, and employment status.

Affordable Interest Rate

With our home extension loan, you can avail finances for the extension of your house at very competitive interest rates. Our home extension loan interest rates are the best in the industry, starting from just 7.75% per annum.

Easy Repayment

You can avail of our home loan for extension of house and repay us at your convenience. You can choose a suitable tenure of up to 30 years for the repayment of your home extension loan. The longer the tenure you choose, the lower would be your house extension loan EMIs.

Minimum Processing Fee

At Tata Capital, we understand that home renovation can be expensive. That is why we try to make your loan for house extension as affordable as possible. We charge very nominal processing fees on home extension loans so that you can spend your money on what matters the most.

Features of Home Extension Loan

Rate of Interest

Usually, they are offered at the same interest rates as regular home loans. The interest rate for a home extension loan also depends on the applicant’s age, monthly income, occupation, and credit score, among several other factors. With Tata Capital, you can get them at the most competitive interest rate in India, starting from just 7.75% per annum.

Loan tenure

It’s prudent to choose your loan tenure diligently as it dictates your total interest outgo and the EMI amount you have to pay every month. If you want to spread over repayment into smaller EMIs, you can opt for a longer loan tenure. However, when you choose an extended loan tenure, your total interest outgo also increases.

Home extension loan charges

Apart from the interest rate, lending institutions may levy several other charges on home extension loans. These include processing charges, legal charges, foreclosure charges, EMI bounce charges, recovery charges, and conversion charges, among others. It’s better to opt for a lender that levies minimal or zero hidden charges. We provide them with a very nominal processing charge of 0.5% of the loan amount.

Loan amount

Since a home extension loan is taken for the addition of new spaces or rooms to your house, it involves a significant amount but is not as high as a home loan. You should choose your loan amount wisely. If you apply for a higher loan amount than what is required, your EMIs may go up unnecessarily. With Tata Capital, you can get a home extension loan of up to Rs. 5 crores.

Eligibility criteria

In the case of home extension loans, lenders usually ask for some simple eligibility requirements in terms of age, employment status, occupation, monthly income, credit score, etc. It’s recommended you should apply for a home extension loan only if you’re eligible for it. Otherwise, it can needlessly hamper your credit score.

Documentation

Some of the major documents required for a home extension loan include a government identity proof, address proof, age proof, income proof, employment or business proof, home extension or property-related documents, and a cost quotation for your home extension. You are required to submit these documents at the time of applying for the loan.

Balance transfer facility

This facility allows you to transfer your existing home extension loan balance to a new lender offering a better interest rate and favorable lending terms. This way, you can reduce your borrowing costs and enjoy enhanced features and benefits on your home extension loan. However, you should opt for the balance transfer facility only if your overall savings are significant enough to cover the costs involved.

Availability

While some lenders offer these loans only to their existing customers, others provide them to both existing and new customers. To apply offline, you need to visit the lender’s branch with the required documents. Whereas, if you want to apply online, you can do so from the convenience of your home/office by visiting the lender’s website and filling up a simple loan application form.

Repayment options

Some of the most common repayment options offered by lenders include standard EMIs, delayed EMIs, increasing EMIs, decreasing EMIs, bullet payments, part pre-payments, and foreclosure. For example, if you don’t want to pay high interest, you can opt for the increasing EMI option. Here, you are required to pay lower EMIs at the beginning of the tenure, and then, they increase gradually towards the end.

*The maximum loan amount offered may increase on a case-by-case basis, depending on individual eligibility and in accordance with our approved policy.

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Eligibility Criteria for a Home Extension Loan

The eligibility criteria for a home extension loan may vary from lender to lender. At Tata Capital, we provide a home loan for extension of house with very basic eligibility requirements and minimal documentation. Our home extension loan eligibility criteria include:

The applicant should be in the age group of 24 to 65 years (at the time of loan completion)

If the applicant is a salaried employee, they should be earning a salary of at least Rs. 30,000 per month

If the applicant is self-employed, they should have an experience of at least three years in the same business

What are the EMI Plans for Home Extension Loans?

At Tata Capital, the convenience of our customers comes first for us. That is why we provide Flexi EMI plans for our home extension loans. You can choose from the following EMI plans and repay your home loan for extension of house at your convenience.

Standard EMI Plan

You’re required to pay fixed EMIs consistently for your entire home extension loan tenure.

Step-Up Flexi EMI Plan

You can pay lower EMIs in the beginning and then increase them gradually.

Step-Down Flexi EMI Plan

You can pay higher EMIs in the beginning and then decrease them gradually.

Bullet Flexi EMI Plan

You can repay your loan for extension of house in lump sums along with your EMIs.

Who can apply for a Home Extension Loan?

Anyone who seeks to extend or change the structure of their existing house can apply for a home extension loan with Tata Capital. You can either apply individually or jointly, depending on the ownership of your housing property. All you need to do is fulfill our home extension loan eligibility criteria.

Home Assistance Tools

Process Guidance Tool

You can access our Process Guidance Tool to get contextual guidance for the steps that you should follow while buying a housing property.

Buying Affordability Tool

Our Buying Affordability Tool will help you prepare your overall property budget based on your home loan eligibility and cash in hand. This tool will also suggest localities where you can find housing properties in your budget.

Property Search Tool

Our Property Search Tool will help you search for your desired housing property in several property portals under one roof.

Documents Checklist Tool

Our Documents Checklist Tool will help you know your maximum home loan eligibility, the documents required, and the right home loan product for you.

TDS Filing Guidance Tool

Our TDS Filing Guidance Tool will help you calculate the maximum tax deduction against your home purchase. You will also be able to generate Form 26QB.

Available payment options

Deduction Against Salary (DAS)

If your employer agrees, you can choose to pay your Home Loan EMIs directly from your monthly salary. You just need to authorize your employer to deduct the EMI payment from your salary and deposit it with the lender.

Post Dated Cheques (PDCs)

You can provide post-dated cheques for the EMI amounts at the time of loan sanction. You can either provide all PDCs for your entire loan tenure at once or issue fresh PDCs periodically but at least three months in advance. We accept this payment option only if the auto debit or ECS facility is unavailable.

Maximum loan amount and the repayment period

If you are looking to apply for a home extension loan in the near future, one of the first things you should work out is to determine the maximum loan amount and the repayment period. By having an idea of how much you can borrow and for what duration, you can plan your home extension accordingly. But do you know how these figures are decided?

Typically, lending institutions consider various factors to determine your maximum loan amount and tenure. These include:

Your monthly income

Your current monthly income plays a huge role in determining your repayment capability. Lenders usually provide only that much loan amount that you can repay. They also look at your existing financial liabilities while deciding your maximum loan amount and tenure.

Your credit score

Your credit score is another crucial factor that determines your maximum loan amount and repayment tenure. If you have a good credit score, preferably 750 or more, you can get a high-amount loan for a longer tenure easily.

The value of your property

If you’re applying for a mortgage loan, the value of your property also impacts the maximum loan amount you can borrow. The higher the market value of your property is, the higher will be your loan limit. Usually, lenders sanction loans of up to 80% of a property’s market value.

Your employment stability

Your employment stability shows your home extension loan repayment capacity. When you have stable employment with a reputed organization, your chances of getting a high loan amount for a longer tenure increase.

Your age

Last but not least, your age at the time of applying for the loan also determines your maximum loan amount and tenure. If you are nearing retirement age, you may find it difficult to get a home extension loan for a long tenure.

You must choose your loan amount and repayment period carefully as they are the primary factors that decide your EMI. You can use our home loan EMI calculator to evaluate the EMIs you have to pay for a specific loan amount and tenure, and then, plan your home extension loan repayment accordingly.

What is the LTV ratio in a home extension loan?

A loan-to-value (LTV) ratio is the ratio of the maximum loan amount you can borrow against the value of your mortgaged property. Lending institutions typically assess the LTV ratio to determine the risks involved in lending a loan to a borrower. Usually, the LTV ratio in a home extension loan range between 70% and 90%.

The LTV ratio is calculated by dividing the maximum loan amount by the property’s market value and multiplying the result by 100. For example, if the market value of your house is Rs. 1 crore and the maximum loan amount you can borrow against it is Rs. 70 lakh, then the LTV ratio of your loan would be 70,00,000/1,00,00,000 * 100, i.e., 70%.

A higher LTV ratio means you can avail of a bigger loan amount at more favorable terms. The Reserve Bank of India has set certain guidelines for lenders for deciding the LTV ratio for home loans:

For a loan amount of Rs. 30 lakh or less, the LTV ratio cannot exceed 90%
For loan amounts ranging between Rs. 30 lakh and Rs. 75 lakh, the LTV ratio cannot exceed 80%
Whereas, for a loan amount exceeding Rs. 75 lakh, the maximum LTV ratio can be 75%.

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With Tata Capital, you can apply for a home loan for government employees in a few easy steps and get housing finance at competitive interest rates.

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What our customers say about us

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

We extend our heartfelt gratitude to Mr. Pravin Sagare, Senior Officer of Customer Service, for his exceptional service. His remarkable demeanor and professionalism during telephonic interactions with customers have been truly outstanding. Over the past two years, we have utilized various services, yet none have matched the quality provided by Mr. Sagare. We are deeply impressed by the exemplary service, due to this reaons we has influenced our decision to obtain a second home loan from TATA Capital Housing Finance Limited.

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Special thanks to Mr. Avinash for his help rendered with full commitment to his job, answering the queries to me clearly, and follow up so that the work is done in given time to get customer satisfaction.

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Read All

Popular FAQs

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