What is a Joint Home Loan?
A joint Home Loan is a Home Loan taken by more than one individual. All the co-applicants in a joint Home Loan have an equal financial responsibility towards loan repayment. In India, one can avail of a joint Home Loan with a parent, a spouse, or any close family member.
Borrowers must know that a co-applicant does not need to be a co-owner. However, the tax benefits associated with joint Home Loans can only be availed of by co-applicants who are also co-owners.
Joint Home Loan Eligibility Criteria
To be eligible for a joint Home Loan, all co-applicants must meet the Home Loan eligibility criteria set by their lender. These are the generic eligibility criteria for Home Loans in India.
- You must be a resident citizen of India between the age of 23 and 62 for salaried individuals and 25 to 70 for self-employed individuals, at the time of loan maturity.
- Whether salaried or self-employed, you must be able to show work experience of at least 3 and 5 years(respectively) along with a stable income.
- Your credit score must be impeccable. In case the primary applicant's Home Loan eligibility is low, co-applicants must mandatorily have a credit score of 750+.
Borrowers must note that joint Home Loan eligibility criteria vary among lenders. So, before making a joint Home Loan application, go to your chosen lender's website and see their eligibility criteria for joint Home Loans.
Also Read: How Does a Joint Home Loan Affect Your Credit Score?
Benefits of Joint Home Loans
Joint Home Loans come with several benefits.
- When two or more individuals apply for a Home Loan together, the risk involved for the lender decreases and the overall payment capacity of the borrower increases. Thus, in the case of joint Home Loans, lenders readily sanction a higher loan amount.
- In the case of a Joint Home Loan, the burden of Home Loan repayment falls on more than one individual. All the parties involved are equally responsible for repaying the loan. This makes loan repayment easier and stress-free.
- When co-applicants in a joint Home Loan are also co-borrowers, all co-applicants can avail of tax benefits separately on the payments made towards interest and principal repayment.
- Some lenders offer special interest rates to women. Thus, if the co-applicant on your Home Loan application is a female, you may be able to avail of a loan on lower interest rates than what would have been otherwise offered to you.
*Terms and conditions apply.
