Loan Process Guides

Apply for Joint Home Loan for Higher Eligibility

Apply for Joint Home Loan for Higher Eligibility

Purchasing a home is a one-time investment which requires sound financial planning. While home loan is the first choice for availing financial assistance, having a joint home loan only makes it much more lucrative. Having a co-applicant enables higher loan amount eligibility and also provides a set of benefits as listed below.

Eligibility for Co-Borrowers

To apply as a co-borrower, certain eligibility criteria have to be met. The following is the list of people who are eligible to apply as a co-borrower.

  • Parents – Parents can definitely apply as co-borrowers for a joint home loan.
  • Spouse – Many working couples apply for joint home loans with one or the other as the co-borrower.
  • Siblings – Sibling of the primary borrower can apply to be co-borrowers.
  • Daughter – Daughters who are primary owners of the property and are unmarried can be co-borrowers.
  • Son – Primary ownership of the properties is provided to sons in most cases. They can apply as co-borrowers.
  1. Loan Eligibility Enhanced
  2. Adding a co-applicant who has a steady income and a good credit score can not only improve your chances of getting a home loan but can also help with a higher loan amount. Rather than taking a loan  on your individual income, a combined income between you and your co-applicant could increase the eligibility for higher loan amount.

  3. Taxation Convenience
  4. According to Section 24  of the Income Tax Act of India, each co-owner who is also a co-applicant in the loan, can avail a Income tax deduction of a maximum of Rs 2,00,000 on principal amount on the home loan.

    Additionally, according to Section 80C of the Income Tax Act of India, each co-owner who is also a co-applicant, can claim a deduction of maximum Rs 1,50,000 towards repayment of Interest. This is within the overall limit of Rs 1,50,000 of Section 80C.

  5. Benefits set aside for Women
  6. There are benefits if the co-applicant is a woman. For instance, women enjoy a rebate of 1-2 % on stamp duty as compared to men in most states in the country. Therefore, if the property value is INR 50 lakhs, a woman co-owner stands to save up to INR 1 lakh.

    Several lending institutions in India offers a benefit of 0.50% to 1.00% on home loan interest rates. While the interest rate benefit might look insignificant at the face of it but when calculated on a home loan tenure of 20 to 30 years this amount turns out to be significant.

  7. Reduces EMI Burden
  8. Since joint home loans, by format are shared between individuals, the responsibility of repayment is also shared amongst them while also reducing the financial liability on a particular individual.

Conclusion

In a nutshell, joint home loans have several benefits and can help accelerate your plan of buying your dream home well within reach. The greatest benefit you will experience is enhanced loan eligibility. Furthermore, you will also be able to avail of certain tax deductions under the Income Tax Act of India. Additionally if the co-applicant is a women one can gain from the supplementary benefits and discounted interest rates as well. To know more on your eligibility on home loans and avail exciting options, please feel free to reach out to us at Hero Housing Finance. We are happy to assist !

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