Increase Your Eligibility through Joint Home Loan in India

Are you planning to take a home loan to buy your dream home? Or can you relate to the happiest moment of owning your own home? We know that it is a warm feeling of stepping into your own house after years of hard work and owning a house is really a big deal, after all, it’s expensive. For many people, it has become a wish, as their application for home loans get rejected. But not anymore now! Instead of opting for an individual home loan, you can go for a joint home loan.  A joint home loan will not only help you to lighten your debt burden but also makes you eligible to get a higher loan amount as the lenders consider the income of co-borrowers.  In addition to this, it gives you tax benefits.

Taking joint home loan in India can be availed by an applicant along with his or her spouse as well as with your parents or siblings. You can always check with the various lenders online who are offering loans terms and conditions beforehand.  Do remember that you can’t apply for a joint home loan with your friends, sisters or unmarried couples living together.

The need

If your income is not sufficient to cover the loan amount, then, in that case, you can bring in a co-applicant so that you can increase the loan amount value. People opt for joint home loans in India to raise a loan of a higher amount.

So, what is the eligibility?

Taking a home loan in India is really a big liability and the eligibility gets improved as the repayment capacity also goes up based on the co-applicants income.

Loan tenure

Generally, to apply for joint home loans, if your spouse is a co-applicant then the duration of the loan can be up to 20 years, and in case of parents or siblings, it goes up to 10 years. You must remember that in the joint home loan process if one borrower fails to pay the EMIs on time, the other will be liable for making the payment.  As the repayment of the loan is the collective responsibility of the borrower and co-borrower.

Documents Needed

Well, many lenders have a different set of requirements of documents to sanction a joint home loan in India. Most of the lenders would be asking for your monthly income proof (Form 16), proof of co-ownership of the property, occupation certificate from the builder, KYC, salary slips, employment certificate etc. 

The Benefits

While you apply for Joint home loans, you can enjoy tax benefits. Under section 24 and 80C of the income tax act 1961, a co-applicant who applies as a co-owner of the property can avail the tax benefits in respect of the principal and interest paid during a financial year on a proportionate basis.

One must also remember that lenders check the credit scores of both the applicants. Applicant and co-applicant must improve their CIBIL scores before applying for the home loans in India. If lenders find any delinquencies or any default, there are chances that your application get rejected.

Hope this information has helped you in taking a decision for your dream home. One must compare and check online regarding interest rates and documents needed.