Home loan: Can you take a joint home loan? Who can apply, benefits, rules – Why joint home loan

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Home loan: Can you take a joint home loan? Who can apply, benefits, rules - Why joint home loan
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Home loan: Can you take a joint home loan? Who can apply, benefits, rules – Why joint home loan | The Economic Times

why joint home loan
Purchasing a home involves a great deal of financial planning as this is a big-ticket investment. People usually avail of home loans that offer repayment benefits as well as tax advantages. Financing through a home loan can be done up to 90% of the value of the property. Since the home loan quantum and rate of interest are key parameters for taking a home loan, having a joint applicant can increase the chance of a larger limit as the co-applicant’s income can also be taken into consideration.

Text: ET Contributors: Centre for Investment Education and Learning (CIEL).

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Who can jointly take a home loan?

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Who can jointly take a home loan?

Co-applicants of a home loan need to be close relatives, such as a parent, spouse, sibling, son, or unmarried daughter. The KYC documents and loan-related documents of all co-applicants have to be provided along with the income documents of all applicants taking the home loan.

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Benefits of joint home loan

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Benefits of joint home loan

Apart from the higher limit that can be sanctioned for a joint home loan, many banks offer lower interest rates if the first applicant is a woman. There may also be an advantage of reduced stamp duty for home loan agreements or loan processing charges in the case of women applicants. It is good to check such offers available at the time of availing of the loan.

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Joint home loan: How it can help

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Joint home loan: How it can help

A joint home loan also allows the co-applicants to share the burden of paying the hefty loan amount. One of the significant advantages of taking a joint home loan is that the co-applicants can individually avail of tax benefits on the combined loan on principal as well as interest payment.

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Points to note
a)A co-applicant for a home loan need not be a co-owner of the house.
b)A non-resident Indian (NRI) can also be a co-applicant for the loan.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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