Survey shows that individuals purchasing a house in India often exceed their initial budget for spending by a margin of 20%. This 20% can later become a liability; especially, if you are availing a home loan to purchase your house.
Now, if you avail a home loan jointly, you can even cover this extra 20% expense with ease. For a joint home loan, your spouse, parent or siblings can apply as co-applicant. Financial institutions can even allow up to six individuals to apply for a loan jointly, minimizing repayment liability.
Following are few benefits that you can avail by opting for a home loan jointly:
You can avail a higher loan amount
Lenders often offer a higher loan amount if you apply for the advance with a co-applicant. The loan amount depends on each co-applicants repayment capabilities.
You can avail tax benefits
Under Section 80C, the applicants can claim the exemptions up to the maximum limit – Rs. 1.5 Lakh on the loan principal. Additionally, under Section 24(b), they can claim the maximum decoctions up to Rs. 2 Lakh on the home loan interest paid.
Women applicants can avail a lower rate of interest
If a joint home loan’s primary applicant is a woman, then lenders may offer a lower interest rate. However, to avail of this benefit, the woman has to be the sole or joint owner of the property.
Before applying for the joint home loan, ensure that you check the loan amount you are eligible to borrow with your co-applicant. Knowing the amount beforehand can help you to plan your repayment better.
Additional Read: 4 Reasons Why a Joint Home Loan Can be Important
