There is a plan to take a joint home loan, first know its advantages and disadvantages

There is a plan to take a joint home loan, first know its advantages and disadvantages

When you take a home loan in association with someone else, it is called a joint home loan. Often people take a joint home loan with their spouse or siblings. If a person is not able to repay the entire loan amount on his own, then he can take a Joint Home Loan.

Benefits of Joint Home Loan


  • If your partner has a good credit score and your combined income is enough to cover the EMI, then you can also get a higher home loan.
  • Both people section in case of joint home loan You can claim income tax benefit under 80C.  For this the condition is that both of them must be co-owner.
  • Both can take benefit of Rs.2 lakh on interest and Rs.5 lakh on principal.
  • < p>Disadvantages of Joint Home Loan

    • If your co-applicant is unable to pay the EMI, it will affect your credit score.
    • >Joint applicant can get loan easily but it is not a guarantee of getting loan. This is because home loans are very risky for banks.

    in things of Keep Attention

    • Your co-applicant must have a good credit score or else your application may be rejected.
    • Lenders sanction joint home loans only if the ability to repay both the primary and co-applicants is good.
    • Sometimes the lender does not reject your application outright but gives you a higher rate of interest. But  gives loan. The debt-income ratio between you and the co-applicant should not exceed 50 to 60 per cent.

    Female co-applicant

    • For women home loan buyers, many lenders keep the home loan interest rate low.
    • This rate is about 0.05 per cent (5 basis points) lower than the normal home loan rate.
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    • If there is a woman co-applicant in the home loan, then the benefit of lower interest rate will be available only if the woman is the first applicant for the joint home loan. Or the woman should own or jointly own the property.

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