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A joint home loan is a lucrative alternative for individuals who are willing to take home loans to construct or purchase a new home. A financial institution takes into account several details of the borrower before sanctioning the loan amount, like credit score, income statements, etc. Having a co-applicant for a home loan can help an individual to split the debt burden and also reap higher home loan tax benefit.
Some Other Notable Advantages of Joint Home Loan
- Poor credit history can lead to rejection of your home loan application. However, if your co-borrower has a good credit score, your chances of availing the loan application approved enhances.
With a credit score above 750, the lender can assess your repayment capability and may allow you to negotiate on the relaxation on the interest rate.
- All the co-borrowers have the provision to apply for tax exemption on the repaid amount based on Section 80C and 24(b). The cumulative home loan tax benefit acquired by the borrowers is undoubtedly more than the profits received by a single account holder.
- Individuals who opt for a joint home loan are entitled to receive a substantial loan amount. Since the loan burden is divided between the borrowers, the EMI payments are made more affordable.
Upon these aspects, lenders can decide on sanctioning a high loan amount based on the repayment capability of you and the co-borrower.
Apart from the benefits elucidated above, a joint home loan enables borrowers to build a good credit score if they succeed in clearing off the obligations without defaulting.
