Benefits of availing a Joint Home Loan | Home Loans Tips

There are a lot of Benefits of availing a Joint Home Loan. We all desire to own a house but looking at the prices of the property, we often drop the idea of buying one. Affordability and practicality makes us let go of our desires of owning a house. However, it is sensible to avail a joint Home Loan for buying our dream home.

Let us have a look at Benefits of availing a Joint Home Loan

  • High Loan Amount

This will make sense to all of us as two is always better than one. If one person is eligible for X amount and another person is eligible for Y amount, then both of them together are eligible for X+Y amount. One of an important benefit of a joint Home Loan is that we can borrow an amount of greater value.


  • Tax Benefitsplann

Government of India supports us in buying a house of our own. We can get tax benefit while availing a Home Loan.  The Income Tax Act states that a borrower can claim an exemption under Section 80 C up to INR 1,50,000 for the principal repayment and up to INR 2,00,000 on the interest amount under Section 24.

However, in case of a joint Home Loan, all the co-owners can claim for deductions to a maximum of INR 4,00,000 on interest paid jointly and INR 3,00,000 on principal paid in a financial year. There is a limit to each individual’s exemption and the tax benefit is calculated in the same ratio as to the loan is sanctioned.


  • Debt Sharing

Availing a loan is one thing and paying monthly equated instalments is another. We often consider that we might be able to pay that amount easily, but there a lot of instances when some other unplanned expenses come up and your whole financial planning shatters. A joint Home Loan is the way to go about it. The obligation splits among two applicants and it becomes easier to take out that amount in comparison with the one which would be borne individually. Another interesting benefit is the risk of defaulting on loan payment reduces as it divides among two borrowers.


  • Better Odds

Everybody has a different income and there is a possibility that we are not eligible for the amount that we want to avail. Our eligibility and current obligations restrict us from getting the desired amount. When availing a joint loan, both the incomes are cumulated and a greater amount is approved. There are high likely odds of loan sanction in case of a joint loan as it raises the repayment capacity.


  • Better Repayment

When any individual avails a loan, he would want to keep the EMI amount low, which would increase the tenure of the loan. On the contrary, when a joint loan is availed, the EMI amount is higher in comparison to the previous case and therefore, the tenure is a shorter. This offers better and faster repayment mode which is acknowledged by both – the customer and the banker.


If you are planning to get a Home Loan, take a little more time and consider approaching a co-borrower as the benefits of opting for a joint Home Loan are far more than a loan with only one borrower. Spouses are the ideal co-borrowers for a joint Home Loan, but one may even take loans jointly with parents or siblings. Friends, unmarried partners are however not allowed to borrow loans jointly. Make sure to assess both yours and the co-borrower’s financial situation before rushing into taking a loan together.

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