What is a Joint Home Loan?:Which family members can you include in a joint loan? know the benefits complete process

Home buying is everyone’s dream, but due to rising property prices, taking a home loan can sometimes become difficult. In such cases, joint home loan is an option that not only increases your loan-taking capacity but also provides many tax benefits. If you trust your partner, parents, son or other close relatives and want to buy a property together, taking a joint loan can be a wise decision. This is not just about paying EMIs together, but can also become part of financial planning. There are some important conditions in this which are very important to understand. So, lets see what a joint home loan is! Also, delve into the following points: Question- What is a joint home loan? Answer- A joint home loan is a loan that is taken by two or more people together. All the people taking this loan collectively pay its installment (EMI). Generally, when husband-wife, parents and children want to buy a house together, they take a joint home loan. All people taking a joint loan are also co-owners of the house and everyone has equal responsibility. Buying a house requires big planning and money. In such cases, if your income is low or you are unable to get a loan alone, you can take a joint home loan with any of your close relatives. Question- With whom can a joint home loan be taken? Answer- You can take a joint home loan together with your family members. Following family members can be included: Question- What are the benefits of such a loan? Answer- There are many benefits of taking a joint home loan. Both people get tax exemption, the loan gets approved quickly, and you can also get a higher loan amount. Let’s understand the benefits of joint home loan through following graphic: Understand these points in detail: Question – What is the eligibility criteria? Answer- It is necessary to meet certain criteria for joint home loan. Let’s understand these through following graphics: Age Limit: For home loan, the minimum age of joint applicant should be 21 years and maximum age can be 65-70 years. Loan approval becomes difficult after retirement. Therefore, it is important to keep age in mind. Relationship Validity Joint home loan can only be taken with people who are legally in a relationship. For example – husband-wife, parents and children, or in some banks siblings are also eligible for loan. All applicants must become co-owners. Source of Income Both applicants should have stable income – such as job, business or professional income. The bank checks whether both incomes are sufficient to repay the loan. Credit Score Credit score plays an important role in loan approval. If one person’s score is very low, there may be difficulties in getting the loan. A score of 700 or above is considered better. Repayment Capacity The loan EMI is paid together, so the combined income of both is considered. The bank ensures that paying EMI from your monthly income is possible. Question- What things should be kept in mind while taking a joint home loan? Answer- Following things need to be considered before taking a joint home loan: Mutual Understanding and Trust Before taking a joint loan, there should be strong mutual understanding between both applicants. Because every decision related to loan amount, EMI and property has to be taken together by both. Property Share Tax benefits are only available when both people are also shareholders in the property. This benefit will not be available by just being a guarantor or co-borrower. EMI Distribution Clarify in advance who will pay the EMI or in what proportion it will be paid. This will prevent any kind of dispute or misunderstanding in the future. Default Situation If for any reason EMI is not paid, it will affect both credit reports. Therefore, the responsibility of timely payment should be shared. Tax Benefit Planning Both can get tax exemption under Section 80C and 24(b), but for this it is necessary that both applicants are co-owners in both the loan and property. Agreement in Financial Decisions If the loan needs to be transferred, pre-paid, or topped up in the future, consent of both parties is required. Therefore, take all major decisions together. Relationship Discord If there is tension in the relationship for any reason, such as in the case of husband and wife, the responsibility of loan and property can become a cause of dispute. Therefore, legal advice can also be taken. Read Bank Terms Carefully Every bank or finance company levies different terms and conditions. Understand all rules pertaining to processing fees, interest rates, documentation, foreclosure charges beforehand. Credits: Subhash Dubey