For Indians, purchasing a home is not a normal thing, it’s an event that must be planned to get maximized success. People used to save up all their lives to be able to purchase a home, but that was a time-taking and tiring process.
However, modern finances have paved the way for an effective and affordable solution in the form of Home Loans. People willing to purchase their own homes can easily apply for a housing loan and get an affordable one from one of the leading online lenders.
One can also make the most of the Home Loan calculator available at a lender’s website to know how much EMI he will pay on the desired House Loan. Knowing of an exact Home Loan EMI makes one better prepared to apply for a housing loan or not as per his/her affordability.
However, despite applying for a Home Loan even after assessing one’s eligibility, sometimes a Home Loan is not approved. It may be because of many reasons such as:
- Not having a good Credit Score
- No strong repayment record
- Inconsistent income record
- Erratic employment history
- Other reasons
Thus, if your Home Loan application gets rejected because of any of the mentioned reasons, you can still avail it with the help of a Joint Home Loan.
What is a Joint Home Loan?
A Joint Home Loan account is when you apply for a Housing Loan along with another person whose financial profile or portfolio is better than yours.
Who can be a Co-applicant?
A co-applicant in a Joint Home Loan could be an immediate family member. He/she could be a salaried professional or self-employed, an Indian and NRI.
How does a Co-applicant Help?
A co-applicant can help the case of your Home Loans such as:
- Enhance your overall Home Loan eligibility
- Helps you purchase a bigger home
- Aids you get home in a prime location
- Lap up tax benefits
- Share the load of repayment or EMIs
Benefits of applying for a Joint Home Loan account
There are some major benefits of applying for a Joint Home Loan such as:
- Enjoying an Enhanced Home Loan Eligibility
By joining or polling the incomes of both applicants while pitching for a Joint Home Loan application, you can get the benefit of applying for higher loan eligibility. As a result, you can easily get a larger amount to help you get a bigger home at a prime locality.
- Higher Tax Benefits
Once you apply for a joint loan account, you can also gain tax benefits on your Joint Home Loan by co-applicants separately. The only condition is that they need to be an owner of the property and each one is contributing to the repayment of the House Loan. The repayments of the principal are eligible for deduction up to Rs.1.5 lakh under the Section 80C of the Income Tax Act. You can also avail housing loan interest rates based payments up to Rs.2 lakh under Section 24 of the Income Tax Act if the property is occupied by self. If the property is on rent, the full interest amount becomes eligible for tax deduction, and there is no maximum limit.
- Special Home Loan Interest Rates for Women Co-applicants
Some leading online lenders also provide a differentiated Home Loan interest rates for female borrowers. As a result, they enjoy a few points lower than the conventional rates. To be eligible for this, a woman needs to be the joint or sole owner of the home and an applicant or co-applicant.
The Bottom Line
Right from increasing your Housing Loan eligibility, saving tax benefits, sharing repayment load and more, a Joint Home Loan has many benefits. If you want to avail a bigger home at a better location and want to bring down the cost of the House Loan, go for a Joint Home Loan.
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