A joint home loan application is an initiative by banks that allows applicants to include a co-borrower in a home loan with whom they can share their debt-burden and apply for a larger loan amount because the income of a co-borrower will also be considered while determining loan amount eligibility. A joint home loan can be taken by a maximum of six co-applicants. Here’s a sneak peek into the details of this loan type:-
Who is a co-borrower?
Co-borrower is a person who shares the burden of a loan with the primary applicant. A co-borrower can share the loan amount with the primary applicant in any capacity. He/she doesn’t necessarily have to be a co-owner in the property however is liable to pay out the loan as per the pre-set terms and conditions. However, a co-owner of the property has to mandatorily be co-applicant and henceforth, co-borrower in the said home loan.
Who can be a co-borrower in a joint home loan application?
A joint home loan can be obtained by the primary applicant along with an immediate family member as their co-applicant i.e. the applicant’s spouse, parents and siblings can be co-applicants of a joint home loan. Mostly a father and son, unmarried daughter and father, unmarried daughter and mother, brother and brother and husband and wife joint home loan applications are considered eligible for a joint home loan. Note that usually married daughter and parent(s), two sisters, sister and brother, two friends and to-be-married couples cannot be co-applicants in a joint home loan.
List the Documents Required to apply for a joint Home Loan
To apply for a joint home loan, one needs to furnish their KYC (Know-Your-Client) details which include the address proof and identity proof of the co-applicants along with the income proof of their respective income. The proof of co-ownership of the property is also required by the bank to sanction the joint home loan application.
What is the home loan interest rate offered on a joint home loan?
Just like a regular home loan, the joint home loan interest rates vary across banks in India. But currently, all major banks including HDFC, SBI and other housing finance institutions offer joint home loans at as low as 8.30% interest rate, which is subjected to change as per the market conditions.
What is the tax benefit offered on a joint home loan?
Tax benefits on a joint home loan are aplenty. Under section 24 of the income tax act, all co-applicants of a joint home loan can claim tax deductions against interest paid. Plus, section 80 C of the income tax act can let them claim a tax deduction against principal repaid. In addition to this, when two or more persons have taken a joint home loan, every individual paying the income tax can avail the tax benefits available under the Income-tax Act, 1961 relating to the principal and interest paid in a financial year.
What is a joint home loan repayment process?
The process to repay the joint home loan is similar to that of a regular home loan. But the payment should be made through one cheque from a single or a joint account. Another way of repaying the joint home loan could be that the co-borrowers split the number of EMIs amongst them in a manner that the exact number of cheques can be issued by one borrower while the other pays the balance. The next good way out can be such that one borrower pays all the installments and other borrowers pay him their share thereafter.
Who is a co-borrower?
Co-borrower is a person who shares the burden of a loan with the primary applicant. A co-borrower can share the loan amount with the primary applicant in any capacity. He/she doesn’t necessarily have to be a co-owner in the property however is liable to pay out the loan as per the pre-set terms and conditions. However, a co-owner of the property has to mandatorily be co-applicant and henceforth, co-borrower in the said home loan.
Who can be a co-borrower in a joint home loan application?
A joint home loan can be obtained by the primary applicant along with an immediate family member as their co-applicant i.e. the applicant’s spouse, parents and siblings can be co-applicants of a joint home loan. Mostly a father and son, unmarried daughter and father, unmarried daughter and mother, brother and brother and husband and wife joint home loan applications are considered eligible for a joint home loan. Note that usually married daughter and parent(s), two sisters, sister and brother, two friends and to-be-married couples cannot be co-applicants in a joint home loan.
List the Documents Required to apply for a joint Home Loan
To apply for a joint home loan, one needs to furnish their KYC (Know-Your-Client) details which include the address proof and identity proof of the co-applicants along with the income proof of their respective income. The proof of co-ownership of the property is also required by the bank to sanction the joint home loan application.
What is the home loan interest rate offered on a joint home loan?
Just like a regular home loan, the joint home loan interest rates vary across banks in India. But currently, all major banks including HDFC, SBI and other housing finance institutions offer joint home loans at as low as 8.30% interest rate, which is subjected to change as per the market conditions.
What is the tax benefit offered on a joint home loan?
Tax benefits on a joint home loan are aplenty. Under section 24 of the income tax act, all co-applicants of a joint home loan can claim tax deductions against interest paid. Plus, section 80 C of the income tax act can let them claim a tax deduction against principal repaid. In addition to this, when two or more persons have taken a joint home loan, every individual paying the income tax can avail the tax benefits available under the Income-tax Act, 1961 relating to the principal and interest paid in a financial year.
What is a joint home loan repayment process?
The process to repay the joint home loan is similar to that of a regular home loan. But the payment should be made through one cheque from a single or a joint account. Another way of repaying the joint home loan could be that the co-borrowers split the number of EMIs amongst them in a manner that the exact number of cheques can be issued by one borrower while the other pays the balance. The next good way out can be such that one borrower pays all the installments and other borrowers pay him their share thereafter.
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