Banks provide customers with home
extension loans to extend their houses, add more rooms etc. Such loans
fall under the category of home loans.
Maximum Amount of Home Extension Loan:
Banks normally offer
70-85% of the total amount of home extension as loan. The amount of loan
sanctioned also depends on a number of factors such as the age of the
applicant at the time of loan, tenure of the loan, repayment capacity of
the borrower etc.
Interest Charged by Bank for Home Extension Loan:
Rates of
interest charged will be as per Bank's policy on the date of
disbursement of loan. Interest rates can be either on fixed or floating
basis.
Process of Home Extension Loan Application:
Customers can fill
online application forms or personally visit the bank for approval of
loan. A nominal fee of 1-2% is charged as processing by the banks.
Documents Required by Banks for Home Extension Approval:
Businessman/ Self employed professional:
- Application form with photograph
- Educational qualification
- Identity and residence proof
- Proof of business existence with business profile and last three
years income tax return
- Last 3 years income statement and balance sheet.
- Last 3 month's personal and business bank statements.
- Processing fee check
Salaried customers:
- Application form with photograph
- Identity and Residence proof
- Latest salary slip
- Form16
- Last 6 months bank's statement
- Processing fee cheque.
List of Leading Banks providing Home Extension Loans:
