Up to six applicants can avail a joint home loan. With a joint home loan, the financial responsibility also gets divided.
Housing finance companies can also offer a higher loan amount, considering the income of all the individuals who are availing the loan.
Here are a few conditions that need to be fulfilled before you apply for a joint home loan -
1. List of co-applicants who can apply
- Spouse.
- Siblings.
- Parents.
- Sons.
- Daughters.
2. Citizenship
Co-applicants must be a citizen of India. Those of NRI and PIO status have to provide proper citizenship documentation in order to avail the loan.
3. Ownership
Only co-owners of the house can apply to become co-applicants. They should also be either self-employed or salaried individuals.
4. Income
The combined income of all co-applicants must meet the threshold, as stated by the housing finance company.
Here is a list of the benefits of availing a joint home loan -
• Higher loan eligibility
The combined income increases the loan eligibility as a two or more individual can be regarded as more creditworthy compared to a single applicant.
• Income tax exemptions
Similar to a regular home loan, a joint home loan is also eligible for income tax exemptions under Sections 80C, 80EEA and 24(b).
The repayment procedure of joint housing loan is also the same as that of a regular home loan. Nonetheless, multiple payments are not allowed, and borrowers have to pay it as a single installment.
