Joint Home Loan: Benefits of adding a co-applicant to your home loan

Everyone yearns for a place to call home. In most Indian cities, buying a home is still a distant reality for many people, although a home loan is the one that has made this possible.

But for many of us, taking a home loan is a big responsibility to shoulder. As there are multiple factors associated with a home loan and it’s not always possible to take this single-handedly.

But if you show steady income streams, you may not face many difficulties in buying a house. For this, the applicant can choose alongside a co-applicant to take a loan. In other words, a joint Home Loan is the solution to this situation. It allows two people to be the co-owners of the house and co-borrowers of the home loan while taking into account their combined income.

Here are some of the advantages of the Joint Home Loan. Read on to know the benefits: 

1. Can get a higher loan amount: 

You can undoubtedly get a loan amount more than your eligibility when you go with a joint home loan. Hence, it is always beneficial to go for a joint home loan instead of opting for a Home Loan individually.

2.Tax benefits: 

Joint Home loan applicants can enjoy more benefits than individual applicants. Moreover, each of the applicants can claim a maximum of Rs. 1.5 lakh on principal repayment and Rs. 2 lakh on interest payment under Section 24 of the Income Tax Act.  

 

3. Sharing the debt burden:

This is one of the most significant advantages of a joint home loan. You can share the debt burden of the loan with your co-borrower. None of the borrowers is responsible for paying the whole loan by themselves. Both Loan co-applicants can join the ownership as well as both can contribute to the repayments. By doing this, the debt burden is divided, which gives the borrowers a bit of relief.

A joint home loan works in favour of both the borrowers and lenders. Borrowers can be benefited from increased eligibility, and the lender gains from assured repayments.

Thus, it is best to add a partner or family member as a co-borrower so that you can opt for a bigger house while enjoying the tax benefits.

Many banks and NBFCs like Shubham Housing Development Finance lets you add a co-applicant in your home loan to help the applicants avail above benefits.

Hope this article helps you in your future. If you have any further doubts or queries, do let us know in the comment section below!