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There is a plan to take a joint home loan, first know its advantages and disadvantages

When you take a home loan 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. The bank feels that by sharing the burden of home loan with one’s family, it can be easily repaid.

Advantages of Joint Home Loan

  • If your partner has a good credit score and your combined income is enough to cover the EMI, then you can get a higher home loan.
  • In case of joint home loan, both the people are covered under section 80C. You can claim income tax benefits under But for this, it is necessary for both to be co-owner.
  • 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 not able to pay the EMI then it will affect your credit score.
  • Joint applicant can get loan easily as compared to single applicant but this loan can be availed is not guaranteed.
  • This is because home loans are very risky for banks.

Keep these things in mind

  • Your co-applicant should have a good credit score or else your application may be rejected.
  • Lenders of Joint Homes only if both primary and co-applicants have good repayment capacity Approves the loan.
  • Sometimes the lender does not reject your application outright but also gives you a loan at a higher rate of interest.
  • Your and your co-applicant’s loan And the income ratio should not be more than 50 to 60 percent.

Women Co-Applicant
Many lenders offer low home loan interest rates for women home loan buyers. This rate is about 0.05 per cent (5 basis points) lower than the regular home loan rate. If a woman is a co-applicant in the home loan, then the woman needs to be the first applicant for the joint home loan to take advantage of the lower interest rate. Or else the woman should own or jointly own the property.


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