Availing a home loan requires you to hold a CIBIL score of 750 or above. In case you fail to maintain such a score, you can also avail a joint home loan by appointing a co-applicant.
Joint home loans not only make the application procedure convenient but also offer other benefits. Consider the benefits mentioned below to determine if availing a joint home loan will be advantageous for you.
Tax benefits
Co-applicants can enjoy tax benefits under Section 24(b) and Section 80C. Under Section 24(b), you can claim tax benefits for the amount paid against an interest rate of up to Rs. 2 Lakh. Section 80C allows you to claim tax benefits of up to Rs. 1.5 Lakh against your principle amount payable.
However, joint home loan borrowers can claim the mentioned tax benefits only if they are the co-owners of the purchased property.
Higher loan amount
You can also apply for a higher loan amount while you avail a joint home loan. To avail a higher loan amount, the co-applicant must hold a CIBIL score of 750 and above and have a stable source of income.
As a co-applicant, to prove your financial stability, you are required to submit specific documents such as account statements, salary slips, income tax returns, etc.
In addition, availing a joint home loan reduces the strain on your pocket at the time of repayment. Both the primary borrower and the co-applicant are responsible to make the repayments of the credit throughout the tenor.
Additional Read: 4 Reasons Why a Joint Home Loan Can be Important
