A Joint Home Loan as the name is evident, is taken jointly. Your co-applicant may be your parent, your partner or siblings. The mission of central governments of India is to provide a pucca home to each family (We have discussed in detail about Pradhan Mantri Awas Yojna (PMAY). In the same connection we have discussed in detail about the benefits of joint home loan application.
Benefits of Joint Home Loan Application
Buying a home require huge money. Joint Home Loan gives you an scope of increased loan eligibility. Your borrowing capacity is increased adding the income of your co-applicant. This way, You may buy a bigger home. Now we will see to key benefits one by one in detail.
Increases Your Home Loan Eligibility
Home loan eligibility is decided based on your annual income, monthly income, type of business, repayment capacity and similar other factors. If your income fall short for the total loan amount then income of your co-applicant is added to meet the eligibility criteria.
2. Higher Tax benefits
As per the income tax law, both the co-applicants may claim home loan tax benefit on the principal repayment under section 80C. You may also claim the tax benefit on interest amount under section 24. To avail these tax benefits you must be a co-owner and co-borrower of the property. Also the construction of your property must be completed.
3. Buy a Bigger Home
Single loan applicant get less loam amount eligibility so the unit size of property is smaller. But in the case of joint home loan application, loam amount eligibility is increased combining the income of all co-applicants. With this you may opt to buy a bigger home and enjoy your life better. Interesting thing is within the same income you get both get something extra. However the EMI is also increased but it gives you peace of mind.
4. Share Your Debt Burden
Sharing the debt burden means sharing your tension of EMI repayment. Your applicant is also responsible for the debt repayment. This way your mind relaxes and sharing of debt burden finally.
5. Share Your Loan Repayment
Why the head of the family or single applicant should take tension of all EMI repayments. If it is shared then the money could invested for other purpose also. Sharing loan repayments means contributing to EMI amount or taking the tension of loan repayment jointly. This is equally beneficial for co-owner and co-borrower.
6. Women Co-applicant gets lower rate of Interest
In the case of a women co-applicant, the rate of interest on your home loan is also lowered. This gives you lower EMI and higher loan amount eligibility. Also as per the social and cultural values of various parts of our country, women is considered the axis of family. Even government sponsored schemes are focused on women empowerment. This gives you an add on advantage and prestige to make a women co-applicant supporting in the noble cause of nation building and making a happy home to live in.
Above listed were some of the beautiful features of a joint home loan application. If in near future, You plan to apply for a Joint Home Loan then our Loan Experts at Loan Guru will assist you for the same. Keep visiting us for regular updates of Home Loan