It often happens that you apply for a home loan. But your loan application gets rejected because you don’t have a profile. In such a case, a joint home loan can solve your problem. Applying for a joint home loan increases your chances of getting the loan approved. This is because in a joint loan two or more people are responsible for repaying the loan, which reduces the risk of loan default. Here are the special things related to joint home loan.
Get Loan Easily
Often you face difficulty in getting a loan due to low income, loan to income ratio (true fixed obligation to income ratio) or not having a good credit score. In such a situation, adding another person as an applicant increases the eligibility for the loan.
When you take a joint home loan with someone who has a strong credit score and good repayment ability, getting a loan becomes easier. Apart from this, you can get a higher loan amount by taking a joint home loan as the bank will give the loan keeping in mind the income of both the applicants.
More income tax relief
Most home buyers can claim interest on home loans as a deduction of Rs 2 lakh per year under Section 80C and 24b of the Income Tax Act, while Section 80C allows a maximum deduction of Rs 1.5 lakh in a year. Both borrowers can avail various income tax benefits by applying for a joint home loan. However, even if they are both applicants as well as owners, they can avail the tax benefit separately.
Women co-applicants get low interest loans
Many lenders offer a different interest rate for home loans to women co-applicants. These rates are usually about 0.05 percent (5 basis points) lower than the normal rate. A woman must own a property individually or jointly to avail this exemption. Most banks consider a woman as a co-applicant only if she is the owner or joint owner of a property.
Who can take a joint loan?
If there are two earners in the family and the property you have purchased is named after other family members like mother-son, mother-daughter, father-son, father-daughter or wife-husband, apart from siblings, the bank may ask you to open a joint account. can say for Most banks do not offer joint home loans with siblings, while joint home loans with parents, spouse are easily available.
These banks are giving loans at low interest rates
|Bank||Interest Rate (%)|
|Union Bank of India||6.80|
|Punjab National Bank||6.80|
|Bank of Baroda||6.85|
|Bank of India||6.85|