Home Improvement, Extension Loan

Home improvement or home-extension loans are available for the purpose of repairing/extending the existing house.

It is advisable to take advice from professionals such as an architect or a structural engineer for improvement/extension. Remember, structural changes in the building/flats such as extensions or further construction (adding a room, adding kitchen, terrace or an additional bathroom) requires clearances from municipal authorities and other relevant regulatory bodies.

The loan may be disbursed by the bank or a lending institution in full or in installments, depending on the progress of repair work.

The extension or improvement loan can be used for internal and external repairs, structural improvements such as painting, waterproofing and roofing, for plumbing, electrical works, tiling and flooring etc.

The list of documents required for ‘home improvement loans’ are:

  • Title deeds for a period of at least 13 years
  • Encumbrance certificate for the past 13 years
  • ‘Khata’ certificate
  • Latest tax receipts of the property
  • Sanctioned plan
  • License for the extension
  • Estimates of costs from a qualified engineer
  • Cost estimate from the architect or contractors

Tax benefits are available on the interest paid for the ‘home improvement loan’ under section 24.

Home Loan City

Home Loan Banks

Home Loans Guide

Home Loan in Mumbai SBI Home Loan Home Loan Interest Rates
Home Loan in Bangalore HDFC Home Loan Compare Home Loan
Home Loan in Hyderabad ICICI Bank Home Loan Home Loan Eligibility
Home Loan in Delhi Bank of Baroda Home Loan Home Loan Process
DHFL Home Loan Home Loan EMI
Axis Bank Home Loan Home Loan Top Up
IndiaBulls Home Loan
LIC HF Home Loan
IDBI Bank Home Loan

You may also like