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Home Extension Loans

Apart from providing home loans, many financial institutions also give you the facility of providing home extension loans or home improvement loans. The loan can be used for numerous purposes including making improvement or changing the look of your house. This includes adding new rooms or utilities in your house or for example changing the existing garage into a new additional room.

Benefit of Home Improvement Loans

With changing requirements, a house owner usually opts for changing the look of his house from time-to-time. The biggest problem he faces is the unavailability of funds for his house renovation. The solutions are the various home extension loans offered by the various financial institutions. Also known as home renovation loans, these loans help a person in fulfilling his financial requirements for changing or improving his house structure.

Types of Home Improvement Loans

Home improvement loans are divided into two types of loans. These are secured home improvement loans and unsecured home improvement loans. A collateral with an assurance of recovering the amount backs up secured loans. The collateral is usually an asset like home or property. On the other hand, an unsecured home improvement loan has a high degree of risk. These loans don't require any collateral as a back up or security. These loans are good for a short-term purpose.

Choosing the Right Loan

One of the foremost steps while considering a home extension loan is deciding which type of loan you are opting for. Whether it is a secured home improvement loan or an unsecured improvement loan depends entirely on you and your requirement. It is always advisable to go for secured home improvement loans as compared to unsecured home improvement loans because secured loans are a better option as you can get a larger amount of money at a lower interest rate.

People with weak credit scores should go for secured loans, as they will always have collateral as their back up money. On the contrary, unsecured loans are advisable if you don't require a huge amount. Unsecured loans are better than credit card loans since you have to pay less interest. If you have good credit history, you can get loans at the same interest rate as secured loans.

Lenders Available

There are various financial institutions in the market that provide housing finance for your needs in order to make your house a dream house. You have a difficult task of choosing the right lender among the various options available. All the lenders have different services and rates of interest to offer its clients. The various banks providing these services in India are HDFC, SBI, PNB, and ICICI. These banks provide different solutions for housing finance and thus help you immeasurably.

The home extension loans have become common among the masses with the kind of services provided by financial institutions. A person need not wait or postpone his plans of improving his house, because of the paucity of money. He can always go for these loans

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