As our family expands, we plan to invest in bigger homes that offer a more comfortable lifestyle. To get such a lifestyle upgrade, you can take some of the burden off yourself by getting a loan with your immediate family or siblings. A loan with a co-applicant has higher benefits than a standard Home loan. You can achieve your dream home and an easy loan process when applying with a co-applicant. In financial terms, it is known as Joint Home Loan. Now your comforting dream lifestyle is possible without taking all the burden of hefty EMIs & you can also sanction a larger amount.

Below are the advantages you should be aware of while planning to purchase a property:

1. Get More Funds

During the search for a home, there are chances that the loan you can get will be lower than the amount you need. This is when you can apply for a loan with a co-applicant & the fund you may get from the lender/bank will be more. Lenders/ banks ensure the eligibility criteria of the applicants during your loan approval.

2. Enjoy Tax Benefits

If you and your co-borrowers are joint property owners and contribute towards the repayment, you can claim tax deductions separately. According to the law, the borrower can claim up to Rs.1.50 lac on the principal amount in a year. But the number of deductions available to individual borrowers will depend on the percentage of the EMI amount they’re lending.

Important Note: Tax benefits under Section 80 C are not applicable for an under-construction residential property.

3. Convenient Repayment

The EMI payment amount is usually lower when you take a loan with a co-applicant, and the burden becomes less. That is one of the key benefits.

4. Special Rates for Women Co-applicants

There is an additional benefit if you apply for a loan with a female as a co-applicant. Your interest rates are lower than usual home loan rates, so you can save a good amount. Due to the lower interest rate, you can clear EMI faster by paying more.

5. Lower Stamp Duty

If the co-applicant is a woman, a joint property owner gets discounted interest rates and a lower percentage of stamp duty. The Government has passed a mandatory rule that the stamp duty levied on female loan applicants is lower than their male counterparts. Most states like Delhi, UP, and Haryana offer up to 1% to 2% lower stamp duty charges. It further enhances the home loan benefits in income tax and saving funds.

A joint home loan is the most practical option in the current situation as both the applicants contribute equally to fulfil their dream without taking a significant burden.