Availing of a joint Home Loan has several notable benefits that make your Home Loan borrowing and repaying journey considerably easier. Most lenders allow up to 6 financial co-applicants on a Home Loan application, with a minimum of at least, which stands to enhance your Home Loan eligibility substantially. Here are some situations where having a co-applicant join you for a joint Home Loan can help boost your loan approval chances:
- ​If the primary borrower’s CIBIL score does not match the lender’s minimum CIBIL requirements
- If the primary borrower’s profile falls short of meeting the lender’s eligibility criteria, in terms of age or income
- If the primary borrower’s repayment capacity isn’t enough to accommodate steady Home Loan repayments
Most Home Loan borrowers choose to avail of a joint Home Loan with family members or spouses, as having a direct familial relationship can help their case. Here are some relations that usually apply together:
- Married spouses
- Brothers (where it is implied that they will reside together on the property)
- Father and son (where the son must be the sole child of the parents)
- Either parent and an unmarried daughter (where it is implied that the daughter should be the primary owner of the property)
The benefits in store for Joint Home Loan applicants are plenty. Take a look at how availing of a Joint Home Loan can enrich the homebuying experience, by way of an attractive Home Loan:
1. Enhanced Loan Eligibility: Having co-applicants aside from the primary Home Loan applicant can strengthen the applicant’s eligibility, as the lender considers every applicant’s financial standing and creditworthiness – consolidating every applicant’s repayment capacity towards the Joint Home Loan. This can boost the chances of securing a Home Loan that is sizeable, to help you cover the costs of buying the property you desire. The benefits don’t just end there – eligible co-applicants can hope to secure a Home Loan of their preference with low interest rates, with flexible repayment options as well.
2. Facilitates Income Tax Savings: While the investment potential of a Home Loan is well known, it can also be a strong medium for savings for borrowers repaying the loan amount – a benefit that is extended to all co-applicants on a Joint Home Loan as well. Listed below are the conditions under which co-applicants can be eligible for deductions under the Income Tax Act:
- For a co-applicant to be able to claim income tax deductions, they must be listed as a co-owner of the property.
- Only financial co-applicants contributing to the Home Loan repayment are eligible to claim tax deductions. 
- The tax benefits on a Home Loan can only be claimed if the construction of the property is completed. Borrowers can claim the expenses incurred during the construction phase in 5 equal instalments, starting the year the construction is complete. 
Joint Home Loans are a great way to increase your family’s income tax savings, as each financial co-applicant is eligible for the deduction, provided the other conditions are met. Here is how co-applicants stand to gain through a Joint Home Loan:
- Section 24: Co-applicants and co-owners can claim up to a maximum of Rs.2,00,000 on the interest component of the Home Loan repayment amount paid that year. The total deduction for the interest paid will be allocated between all co-owners based on the ratio of ownership.
- Section 80C: Co-applicants and co-owners can claim up to a maximum of Rs.1,50,000 on the principal component of the Home Loan repayment amount paid that year, till the end of the Home Loan repayment tenor.
*Terms and conditions apply
