Why Joint Home Loans Are a Good Idea


Buying a house is the most substantial investment for most of us, and more so when done along with a family member. The increasing number of youths working has positively impacted the Indian economy and has also increased their spend capacity, which is how they can afford loans and finance a home in the best residential project in Thane that would be out of their budget otherwise. Nonetheless, the credit history along with the age, income and the capacity to repay the loan is essential in procuring a loan. Here is how you can improve loan eligibility:

·         -   Your loan eligibility will improve with a joint home loan application. The profile of the co-           applicant, which includes their credit history can help enhance the overall score
·        -      Usually, family members and other relatives are the co-applicants
·       -       For obvious reasons, it improves the repayment capacity
·      -       Co-owners are usually co-applicants, but the opposite is not necessarily the case
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Now, let us discuss the advantages of the joint home loans.

Tax Benefits  

If the co-applicants are also co-owners and contributing to repay the loan on the said property, they can avail tax benefits separately. There is a provision for the same under the Income Tax (IT) Act, 1961.

1- Under the section 80C of the IT Act, deduction can be availed up to a maximum limit of Rs. 1.5 lakh

2- If the property is self-occupied, tax deduction up to Rs. 2 lakhs is provisioned under the Section 24. The entirety of the interest is eligible for tax deduction if the property is let-out.
The collective benefits amount to much higher than what a single person is eligible for since each applicant is eligible individually. The tax benefits that one applicant can avail is proportional to his/her contribution in the loan repayment.

Benefits to Women Co-applicants  

Several banks and home loan companies offer lower home loan interest rates for women co-applicants. Even though it is only a few base points lower, it adds up to a considerable amount in the end, which can be used for other purposes. Discounted interest rates are applicable when the concerned woman is at least a sole or joint owner, and an applicant or the co-applicant in the home loan.
Improved Loan Eligibility

Together, you can avail higher monetary assistance with the help of your credit score and income. While it is easier nowadays to avail a loan for a new 2BHK for sale in Thane Ghodbunder road or even Mumbai, a joint loan allows getting a higher loan amount and therefore, the desired home.

Documents such as KYC forms that are proof of your identity and address along with salary slips and property documents are indispensable to get a loan. Depending on these documents that make your profile, your loan will be processed.

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