Outlook Money
A joint home loan can be taken with the wife or any member of the family. Its first advantage is that one can get it easily and at a cheap rate. The second big advantage is that one can avail good tax benefits on a joint loan.
In the case of a joint home loan, both borrowers can claim income tax benefits under Section 80C and Section 24(b) of the Income Tax Act.
A maximum tax exemption of up to Rs 7 lakh is available on home loans only if both applicants are co-owners of the property and are also registered as co-borrowers in the loan documents.
The loan is given to a single loan applicant according to his income. But in a joint loan, the total income of both is considered. In such a situation, the loan amount limit increases.
Many times people face difficulty in taking a loan due to poor credit scores, low income and/or other types of debt-to-income ratio. In such a situation, a joint home loan is helpful. In this, the eligibility for taking a loan increases by adding another person along with as an applicant.
If one takes a joint home loan with a female co-applicant, then one gets the loan at a slightly lower interest rate. Many lenders offer different home loan interest rates for female co-applicants.
Compiled by Syed Muskan