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Joint Home Loan

Last Updated 22nd Sep 2019

Joint Home Loan Benefits

A joint home loan is a housing loan that is taken by more than one person to increase loan eligibility and share the financial burden equally.


  • Joint home loan interest rates starting @ 8.05%
  • Increase loan eligibility with a joint home loan
  • Avail a joint home loan to enjoy higher tax benefits
  • Loan applied jointly help raise your‭ ‬credit score
  • Special rate of interest for women co-applicants
  • Compare best offers from HDFC, Yes Bank, Axis Bank, Citibank, ICICI Bank
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Why do we need a Joint Home Loan‭?

If you are planning to‭ ‬take a home loan ,‭ ‬you need to evaluate the benefits of taking a joint home loan,‭ ‬as it offers many advantages that individual loan might not offer.‭ ‬A loan taken jointly with a co-applicant can increase a person’s loan amount eligibility,‭ ‬allow to opt for a shorter tenure loan,‭ ‬reduce financial burden for an individual as well as increase the tax benefits.
So,‭ ‬a Joint Home loan is a loan that can be applied jointly by multiple applicants,‭ ‬unlike other loans.‭ ‬There is no specific limit up to which you can add co-applicants to your joint home loan.‭ ‬One thing you need to keep in mind that the person whom you are adding as a co-applicant to your loan should have a share in the property.

Some of the important benefits of taking a loan jointly with others include:

  • Increase in home loan eligibility : The loan is sanctioned after assessing the joint repaying capacity of the co-applicants based on their income.‭ ‬Clubbing income of the applicants together help increase the repayment capacity and allows lenders to lend a higher loan amount to the loan applicant.
  • Shared responsibility : This allows co-owners of the property to become co-borrowers and share the financial burden,‭ ‬thus reducing the risk of distress and inability to meet loan obligations.
  • Tax benefits : As per Income Tax Act,‭ ‬all co-applicants on a home loan are eligible for an income tax rebate up to Rs.‭ ‬1.5‭ ‬lakh each on repayment of the principal amount of home loan under Section‭ ‬80C and up to Rs.‭ ‬2‭ ‬lakh each under Section‭ ‬24‭ ‬of the Income Tax Act.‭ ‬Hence,‭ ‬this allows all co-borrowers to claim tax benefits on a home loan,‭ ‬which becomes especially rewarding in case of loans where the principal amount repaid and interest paid annually exceeds the Income Tax Rebate limit of Rs‭ ‬1.5‭ ‬lakh and‭ ‬2‭ ‬lakh respectively.‭ ‬It's worth mentioning here that the‭ ‬‭ ‬tax benefit of both the deduction on home loan interest and principal repayment can only be claimed after the construction of the property is complete.
  • Special interest rates for women co-applicants : Banks run special schemes under which they offer discounted interest rates to women borrowers.‭ ‬To avail this benefit,‭ ‬a woman needs to be the sole or joint owner of the property and an applicant or co-applicant for the home loan.
  • The flexibility of repayment : When you apply for a joint home loan,‭ ‬you also become eligible for a higher sanctioned amount of loan and that gives you higher flexibility of choosing the loan tenure.‭ ‬Each of the co-applicant can enjoy the flexibility of deciding who will contribute how much while repaying the loan.
Who can be a co-borrower in a Joint Home Loan‭?

In a joint home loan,‭ ‬co-applicant could be anyone like first blood relations including parents,‭ ‬spouse,‭ ‬married couples,‭ ‬father and son‭ (‬where son is the primary owner of the property‭)‬,‭ ‬father and unmarried daughter‭ (‬where daughter is the primary owner of the property‭)‬,‭ ‬two brothers‭ (‬should have a share in the property‭)‬.‭ ‬However,‭ ‬the individuals other than first blood relations like cousins,‭ ‬friends or unmarried partners living together may not be considered as eligible co-borrowers in a joint home loan.

Joint Home Loan for Couples : You can apply for a joint home loan with your working partner if he/she has a stable source of income.‭ ‬It allows the partners to own a property jointly as well as service the loan repayment together,‭ ‬thus reducing the financial burden of the spouse.‭ ‬It will also help you to avail a larger loan amount as well as get a lower interest rate on account of one borrower being a woman.‭ ‬In addition,‭ ‬both the co-borrowers are eligible for a tax-benefit on a joint home loan.‭ ‬You could get a longer tenure of up to‭ ‬30‭ ‬years in case you apply for a joint loan along with your spouse.

Joint Home Loan with Parents : A borrower can also add his/her earning parents as a co-applicant for a home loan.‭ ‬This would,‭ ‬however,‭ ‬require the parent to be a co-owner to your home loan.‭ ‬The loan tenure depends on the age of the main applicant of the loan.‭ ‬You can add your earning father or mother as co-applicant for the loan to increase your loan eligibility.

Applying Jointly with Siblings : Two brothers can apply for a‭ ‬home loan jointly to avail a higher loan amount,‭ ‬provided that both of you need to be should have a share in the property.‭ ‬You and your sibling both would be entitled to get an income tax benefit for the repayment of principal and interest according to the share of ownership in the property.

Eligibility Criteria

There is no specific limit up to which you can add a co-applicant for your loan.‭ ‬It also depends on the bank’s discretion to decide the number of loan applicants.‭ ‬However,‭ ‬a member who is applying for a joint home loan should meet this eligibility criterion for a successful joint ‭ home loan eligibility :

  • He should be a resident of India
  • He should be between‭ ‬18‭ ‬and‭ ‬70‭ ‬years of age
  • He should be a salaried individual (‬minimum or above Rs.‭ ‬25,000‭) ‬with a work experience of‭ ‬3‭ ‬years or more. A self employed with an annual profit of Rs. 3 Lakhs and above is eligible for home loan jointly.
  • A CIBIL Score of‭ ‬700‭ ‬or above

Documents Required for Joint Home Loan

The documents required in the case of a joint home loan are similar to that of‭ ‬‭home loan documents only.‭

For Salaried Employees :

  • Duly Filed Loan Application Form
  • Recent Passport Size Photographs
  • Last‭ ‬2‭ ‬years ITR
  • Proof of Identity‭ – ‬PAN Card,‭ ‬Voter’s ID Card,‭ ‬Passport,‭ ‬Driving Licence
  • Proof of Residence‭ – ‬Rent agreement,‭ ‬Leave and License,‭ ‬Latest Utility Bills and Passport
  • Income Documents‭ – ‬6‭ ‬months payslip,‭ ‬2‭ ‬years Form‭ ‬16,‭ ‬latest‭ ‬6‭ ‬months bank statement showing salary credit
  • Property Documents‭ ‬-‭ ‬Past title chain,‭ ‬Sales deed,‭ ‬Conveyance deed,‭ ‬Allotment letter,‭ ‬Possession letter,‭ ‬Latest property tax receipt,‭ ‬Copy of approved plan for construction/‭ ‬extension

For Self-Employed :

  • Duly Filed Loan Application Form
  • Recent Passport Size Photographs
  • Proof of Identity‭ – ‬PAN Card,‭ ‬Voter’s ID Card,‭ ‬Passport,‭ ‬Driving Licence
  • Proof of Residence‭ – ‬Rent agreement,‭ ‬Leave and License,‭ ‬Latest Utility Bills and Passport
  • Business proof such as VAT/‭ ‬service tax registration,‭ ‬incorporation details in case of companies,‭ ‬business address proof,‭ ‬profit and loss account and balance sheets certified by CA,‭ ‬copy of partnership deed and proof of business existence and business profile
  • Property Documents‭ ‬-‭ ‬Past title chain,‭ ‬Sales deed,‭ ‬Conveyance deed,‭ ‬Allotment letter,‭ ‬Possession letter,‭ ‬Latest property tax receipt,‭ ‬Copy of approved plan for construction/‭ ‬extension

Joint Home Loan FAQs

Can home loans be taken jointly‭?

Yes,‭ ‬you can apply for a home loan jointly.‭ ‬It is beneficial to apply for a joint home loan as it will help you increase your loan eligibility for a higher loan amount.

Can two friends take a joint home loan‭?

Two friends are not permitted to apply for joint home loans.‭ ‬It is because the lender does not allow any relative other than first blood relations and spouse) ‬to be eligible for home loan jointly.‭

How do I claim tax benefit on a joint home loan‭?

Every co-applicant under a joint home loan is eligible for an income tax rebate up to Rs.‭ ‬1.5‭ ‬lakh each on repayment of principal amount of home loan under Section‭ ‬80C and up to Rs.‭ ‬2‭ ‬lakh each under Section‭ ‬24‭ ‬of the Income Tax Regulations.‭ ‬In the case of joint home loans,‭ ‬the tax benefits can be availed only on the amount paid by you and the total tax benefit claimed by all the co-applicants should not be more than the total principal repaid and total interest paid on the home loan annually.‭ ‬The loan paid jointly would help bring down the family’s overall tax liability.‭ ‬However,‭ ‬it’s‭ ‬important to note that each applicant should also have a co-ownership in the property to avail tax benefits.

Can the husband-wife claim home loan‭?

Yes,‭ ‬husband-wife can take a home loan.‭ ‬However,‭ ‬both of them should be earning and be the co-owner of property as well.

Can I take a home loan on my wife name‭?

You can take a joint home loan with your wife if you both are earning well and are co-owner of the property.

Can we take a joint home loan‭?

Yes,‭ ‬anyone eligible can apply for a joint home loan.‭ ‬The members who are eligible for a joint home loan could be first blood relations including parents,‭ ‬brothers and spouse.‭ ‬However,‭ ‬the lender does not permit two sisters and individuals other than first blood relations such as friends,‭ ‬cousins and unmarried couples to be eligible for a joint home loan.‭

Can I get a home loan without Form‭ ‬16‭?

The eligibility for a home loan might vary from one lender to another lender.‭ ‬Some lenders might allow borrowers to apply for home loans without Form‭ ‬16‭ ‬provided that you present some other alternative documents like Form‭ ‬26‭ ‬AS,‭ ‬latest bank statements and‭ ‬6‭ ‬months salary receipts to show your income.‭

How to maximize tax benefits on a joint home loan?

In case of a joint home loan,‭ ‬each co-applicant is entitled to a tax benefit under section‭ ‬24‭ ‬and‭ ‬80C of the Income Tax Act with respect to the share in the house property.‭ ‬You need to be a co-borrower as well as the joint owner of the property to avail a tax benefit.‭ ‬Keep in mind that you will avail the tax benefit with respect to the amount paid by you individually,‭ ‬and the total tax benefit claimed by all co-applicants should be less than the total principal repaid and total interest paid on the home loan annually.

What are the pros and cons of a joint home loan?

There are many advantages of applying for a joint home loan which includes higher loan amount eligibility flexibility in loan repayment,‭ ‬Income Tax benefit under section‭ ‬80C,‭ ‬special rates to women borrowers,‭ ‬etc.‭ ‬Some of the cons include delay in loan processing,‭ ‬as multiple applicants could result in a delay in the documentation.‭ ‬Further,‭ ‬any delay in repayment could also have a negative impact on your as well as your co-applicant’s credit history.

Is it wise to take a joint home loan‭?

You can opt for joint home loans if you want to get a higher loan amount,‭ ‬which is not possible in the case of home loans that are applied individually.‭ ‬Secondly,‭ ‬it also helps you to share the loan burden equally applied along with your co-applicant‭.

Home Loan News - Sep 2019
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