New Delhi: We all have a dream of having our own house or flat. While some have the funds or assets to afford the massive amount to build the house or purchase a flat, others have to
borrow home loan from banks, LIC, or any other money lenders. However, to avail large loan amount, eligibility becomes a crucial factor which becomes often becomes a hurdle for many. However, in that scenario, one has an option of going for Joint Home Loan.
1. If someone is unable to afford the large Home loan amount, then it is advisable to go for a joint home loan. If one can divide the loan amount with a family member or known individual,
banks and lender won’t bother about the repaying the loan amount. In case of joint home loan, the chances of availing higher housing loan in attractive interest rates go up, as per ET Wealth Report.
2. However, before taking any joint home loan, both parties must ensure that their credit scores remain eligible for getting a joint home loan. Please note that income of both individual
will be taken into consideration while approving a joint home loan, the report says.
3. While taking a joint home loan, both the borrowers must ensure that they must have income that will help repay the monthly EMIs.
4. In case of a joint home loan, both the borrowers are eligible to claim benefits under Section 80C of Income Tax Act, 1961. Both the borrowers can deduct up to Rs 2 lakh from the
interest amount. Apart from this, borrowers will also get a deduction up to Rs 1.5 lakh from the principal amount on the taxable incomes.
5. However, borrowers of joint home loan must remain aware of financial and legal obligations. Both the co-applicants need to fulfill a legal formality. On the financial part, if a co-
borrower is unable to pay EMIs, then the other party’s credit score will also suffer.
So basically, a joint home loan is easier to avail but both co-applicants must have an understanding of the legal and the financial nuances associated with it.
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