There are times when your loan eligibility falls short of the requirements stipulated by the lender. A joint home loan can be beneficial in such cases. Here are the benefits of a joint home loan:
Increases Home Loan Eligibility
When you apply for a joint home loan, the lender clubs the applicants' income while computing the loan eligibility. You can make any family member a co-applicant. However, the co-applicant must be salaried or self-employed and have a stable income source.
Simplifies The Home Loan Application Procedure
When you apply for a home loan as the sole borrower, the lender evaluates the application with caution, as only you are liable to repay the loan. However, when you apply for a joint home loan, the lender considers the loan relatively risk-free and offers you a simplified home loan procedure.
More Tax Benefits
When you apply for a joint home loan, each applicant can avail tax benefits under Section 80C and 24. Each applicant can save up to INR 1.5 lacs under Section 80C and up to INR 2 lacs under Section 24. However, to avail tax benefits, the co-applicant also needs to be the property's co-owner.
Discounted Rates For Women Applicants
If you apply for a joint home loan where the co-applicant is a woman, you may get 1-2% discounted interest rates than standard home loans.
Conclusion
A joint home loan can help you save taxes, avail lower interest rates, simplify the home loan application procedure, and enhance the loan eligibility. However, all of these can happen if you select the right lender. It is wise to question the lender regarding loan terms before applying for the loan.
