What Is a Home Extension Loan?
A Home Extension Loan is a type of secured loan provided to homeowners who want to add extra space to their existing home. Whether you need a new bedroom, an additional floor, or an extended kitchen, this loan supports the structural expansion of your house.
What Can Be Funded?
Adding a new room, balcony, or bathroom
Constructing an additional floor
Expanding your kitchen, hall, or living space
Building staircases, internal partitions, or verandas
Any permanent structural addition to your home
Key Features
💰 Loan Amount: ₹1 lakh to ₹50 lakhs (based on profile)
📆 Tenure: 5 to 20 years
📉 Interest Rate: Starting from 8.75% p.a.
📎 Collateral: Usually required (property being extended)
📊 Disbursement: In 1–2 stages, based on project plan
🧾 Tax Benefits: Available under Section 24(b) of the IT Act
Documents Required
Proof of ownership of the property
Approved extension plan by local municipal authority
Estimated cost from certified architect or engineer
KYC documents (PAN, Aadhaar)
Income proof (salary slips/ITR)
Recent bank statements (last 6 months)
Photographs of current and planned structure
Eligibility Criteria
Indian citizen aged 21–65
Must own the property to be extended
Salaried or self-employed with stable income
Minimum CIBIL score: 700+
Clean property title with no legal disputes
Why Choose Vizzve for Your Home Extension Loan?
⚡ Fast approval & step-by-step guidance
💡 Tailored loan plans for your property type
📱 Digital application process with minimal paperwork
🏠 End-to-end support: from blueprint to final construction
🔍 Transparent disbursement linked to construction stages
Tax Benefits on Home Extension Loan
| Section | Benefit | Limit |
|---|---|---|
| 24(b) | Interest deduction | Up to ₹2 lakh/year |
Note: You can claim this only after the construction is complete.
Benefits of a Home Extension Loan
Build more space without shifting homes
Retain your current address and neighborhood
Enhances property value
Lower interest than personal loans
Ideal for growing families or rental needs
Things to Keep in Mind
Municipal approvals are mandatory
EMI starts as per disbursement stage
Cost overruns may require extra funds
Ensure your structure can support vertical extensions (technical check required)
FAQs
Q1. Is home extension loan different from home improvement loan?
Yes. Home improvement covers repairs and interiors. Extension loan is for structural expansion.
Q2. Can I get 100% funding?
No, most lenders including Vizzve offer 80–90% of extension cost.
Q3. Can I apply if the house is co-owned?
Yes, but all owners must co-sign the loan documents.
Q4. Can I avail both home loan and extension loan together?
Yes, if your existing EMI capacity supports the total burden.
Published on : 23rd July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed