Joint housing loans are associated with multiple benefits that have made it a highly feasible financing option for married couples in India. Additionally, HFCs consider the combined repayment capabilities of co-applicants while disbursing joint home loans. Individuals thus become eligible for various advantages such as higher loan amounts, attractive rates of interest, and home loan tax exemptions on such credits.
What are the benefits of a joint home loan?
The fundamental benefits of joint home loan that co-applicants can avail include the following –
Substantial loan amounts – Co-applicants applying for joint home loans are eligible to receive significantly higher loan amounts than in the case of single applicants. As lenders take into account the increased repayment capability of the joint applicants, they approve higher Loan-To-Value (LTV) for high-worth properties.
Affordable interest rates – Individuals who opt a Bajaj Finserv joint home loan also benefit from attractive interest rates as they pose a lower risk of defaulting. The interest component of the EMI decreases substantially, thereby reducing the financial burden on borrowers. This additionally helps individuals to manage their finances for a comfortable repayment of the joint home loan amount.
Tax exemptions – Applicants are also eligible to receive home loan tax exemptions under Section 80C and Section 24(b) of the Income Tax Act, 1961. Tax exemptions up to Rs.1.5 lakh can be availed on the principal component of the joint home loan, whereas exemptions up to Rs.2 lakh are available on the interest component.
Additionally, individuals who have poor credit scores can increase their eligibility of receiving home loans by including a co-applicant with a higher credit score.
