Joint Home Loan: These can be the advantages and disadvantages of joint home loan, know before applying

Joint Home Loan: When you take a home loan in association with someone else, it is called a joint home loan. Often people take a joint home loan with their spouse or siblings. If a person is not able to repay the entire loan amount on his own, then he can take a joint home loan.

Benefits of joint home loan

• You can also get a higher home loan if your partner has a good credit score and your combined income is enough to cover the EMIs.
• In case of joint home loan, both the people can claim income tax benefit under section 80C. The condition for this is that it is necessary for both of them to be co-honors.
• Both can take advantage of Rs 2 lakh on interest and Rs 5 lakh on principal.

Disadvantages of Joint Home Loan

• If your co-applicant is unable to pay the EMI, it will affect your credit score.
• The joint applicant can easily get the loan but it is not a guarantee of getting the loan. The reason for this is that home loans are very risky for banks.

keep these things in mind

• Your co-applicant should have a good credit score otherwise your application may be rejected.
• Lenders sanction joint home loans only when the primary and co-applicants have good repayment capacity.
• Many times the lender does not reject your application outright but gives you a loan at a higher rate of interest. The debt-income ratio between you and the co-applicant should not exceed 50-60 per cent.

female co-applicant

• Many lenders keep the home loan interest rate low for women home loan buyers.
• This rate is about 05 per cent (5 basis points) lower than the normal home loan rate.
• If there is a woman co-applicant in the home loan, then the benefit of lower interest rate will be available only if the woman is the first applicant for the joint home loan. Or the woman should own or jointly own the property.

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