Thanks to affordable home loans, buying a house is becoming a reality for Indians from all financial strata. These loans become even more attractive when you have someone to share them with. That is where joint home loans come in. When you apply for a home loan with a co-applicant, your loan becomes a joint home loan and ends up rendering plenty of advantages that you otherwise wouldn’t have. Joint home loans are excellent ways to finance housing purchase, provided that you have a trustworthy co-applicant, preferably a relative.
Here are some top benefits of applying for joint home loans in India.
Joint Home Loans Increase Your Loan Eligibility
Your home loan eligibility depends on several factors, including your income, age, profession etc. Sometimes, these details do not look appealing enough to lenders which makes you ineligible for the loan. When you apply for a joint home loan, the incomes of all the co-applicants are considered while assessing the repayment capacity. By pooling your incomes together, you and your partner both increase your home loan eligibility.
Joint Home Loans Mean Greater Tax Benefits
Even generally, home loans come with plenty of tax benefits. Both the principal amount repaid and the home loan interest is tax deduction under different sections of the Income Tax Act. For self-occupied property, principal deductions of Rs. 1.5 lakh are possible while home loan interest deductions of Rs. 2 lakhs are offered. If you apply for a joint home loan, both you and the co-applicant can claim these tax benefits separately, which means you end up deriving double the benefit.
Women Applicants Get Better Interest Rates
If you are applying for a joint home loan with your sister, wife, mother, or any other female, your loan just became immensely better. The reason for this is that most lenders offer women some concession on home loan interest rates. Home loan interest rates in India are usually 0.05% lower for female applicants. However, there are two things you must keep in mind even with a woman co-applicant. Firstly, your lender might require the woman to be both co-applicant and co-owner of the property. Secondly, no matter how low the home loan interest rate is, do not hesitate from using a home loan EMI calculator to check the EMI payable. This will enable you to assess both your and your partner’s finances better.
Joint home loans are a true blessing if you have a trustworthy partner or relative. Since the responsibility of loan repayment is also shared, your financial burden also lowers significantly. Moreover, the tax benefits availed on joint home loans will help you save a considerable amount of money too. However, always remember to use a home loan calculator to check EMIs while applying for a home loan to prepare your repayment plan more accurately and manage your budget efficiently. Once you are done with that, go for a joint home loan without any worries.
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