Planning to take a home loan? Take a joint home loan with your spouse; Here’s why

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Published: September 18, 2019 3:12:07 PM

Talking a joint home loan comes with its own benefits and perks. For instance, you get approval for a bigger loan amount and even get concession at times.

home loans, joint loan, joint home loan benefits, bank of india home loans, home loan, home loans in india, home loan calculator, home loans hdfc, home loans interest rate, home loans rates, home loan eligibilityIf you are planning to opt for a home loan, here are some of the benefits of taking a joint home loan;

Home loans are secured loans and are popular as most people look for a home loan to buy their dream house. Also, the payback of this type of loan is convenient as you can repay the loan over a longer period of time through EMIs (equated monthly installments). Home loans are generally big ticket-size loans an individual takes. As the amount is huge, many decide to take a joint home loan. Also, it is mandatory for most banks to have a co-applicant for a home loan, whereas some insist on the co-owner also being the co-applicant. However, it does not necessarily mean that the co-applicant has to be the co-owner. While the co-owner shares the property with someone else, co-applicant is someone who is also liable for repaying the loan, in case the primary applicant is unable to service it.

Talking a joint home loan comes with its own benefits and perks. For instance, you get approval for a bigger loan amount and even get concession at times.

Hence, if you are planning to opt for a home loan, here are some of the benefits of taking a joint home loan;

Approval of bigger loan amount
If you opt for an individual loan, your loan limit will be much lower as compared to a joint loan with your spouse. for instance, if you are eligible for a loan of Rs 40 lakhs, the loan amount can go up to Rs 60-70 lakhs if combined with the spouse’s limit and help you get a bigger house.

Additional concessions
Most banks offer lower interest rates to women applicants. Hence, if the wife is the primary applicant for the home loan, you can get the loan at a cheaper rate. Additionally, the stamp duty fee needed for registration of the house is comparatively lower for women but varies according to states.

Increased Tax benefit
Most opt for a joint loan to an avail tax benefit. With a joint home loan, you get to avail higher tax concession. For instance, the Section 80C tax benefit of Rs 1.5 lakh on the principal amount repaid is enjoyed by both the spouses separately. Hence, you get an enhanced tax benefit and the limit is increased to Rs 3 lakh jointly, under section 80C. Also, the deduction of Rs 2 lakh on interest paid for a self-occupied house under Section 24, gets increased to Rs 4 lakh, in the case of joint home loans.

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