Jay and Sonal fell in love at a young age. The time flew like a quick breeze and they stepped to a greater level of relationship: marriage. After few years of marriage, Sonal requested Jay for a house where the two love birds can flutter without any hassles (which is common in rented apartments). Jay and Sonal, both being salaried, tensed with the current heavy prices and Jay is unsure of fulfilling his wife’s dreams of owning a house. But he can never see Sonal sad and thus he sought help from Mr. Shetty.Mr. Shetty (One who made an intelligent choice of buying a re-sale flat) is good when it comes to take any financial or economical decision. Mr. Shetty took a sharp look at the income of couple and came up with an intelligent solution (once again). He asked the couple to go for a joint home loan as they both were earning and it will also increase the amount of loan.Now, Jay and Sonal live in a 3-BHK flat (they bought at 75 lakh) at Sarjapur road (Bangalore) and easily paying the EMI’s without any sense of burden.The unstoppable increment in the rate of housing units is making it hard to own a house for a salaried person. If a person wants to buy a flat then obtaining a home loan becomes a necessity, as the prices are really not affordable from just the pocket. But what if the price is extremely out of the limits of your imagination and even taking a home loan would not work the way it should be?Here comes the option of taking a joint home loan. When more than one borrower is obtaining a home loan then it’s called a joint home loan. This will also increase the amount limit as there will be more than one income generator who can together pay the EMI. In the time of rising prices, taking a joint effort seems to be a better idea. It’s natural that two is better than one. Hence joint loans are now witnessed in huge numbers in the society as it’s easier to pay them back.The good of joint home loan
- When anybody applies for a home loan, the bank verifies its salary first and foremost. It is analyzed if the income is enough to cover the loan amount. If not then the loan plea is rejected. Taking a joint home loan increases the income amount (income of two persons) which will be mostly enough for covering the loan amount and also increase the limit of loan amount. Many young couples are therefore using this scheme of taking the home loan.
- Another benefit it avails is the tax benefit. If taken a joint home loan, both the husband and wife can claim deductions under Section 80C and Section 24 of the Income-Tax Act towards the principal and interest deductions. Both husband and wife can deduct up to Rs 1 lakh on principal (Section 80C) and up to Rs 1.5 lakh on interest paid (section 24) on the loan in that year.
The bad of joint home loan
- If your co-applicant defaults or passes away then the whole responsibility will come to you. It becomes the applicant’s duty to settle the full loan. Even in the case of married couple, if the home is in the name of one (husband or wife) and their relationship turn out to be in a state of turmoil and leads to separation then also both of them have to continue paying the EMIs.
- The Credit Information Bureau (CIBIL) keeps the record of individual’s loan related payment. Any irregularity in the payment of EMI by any of the co-applicant can harm the other co-applicant’s future eligibility of obtaining any loan.
Notes to remember
- The tax benefits can only be availed if the home is registered in the name of both husband and wife. Also registering in both names makes the property undisputable.
- Think of extreme circumstances and if you will be able to repay the loan by just yourself or not.
- Only married couples, parents or children can avail a joint loan. In certain situations, brothers are also eligible. However live-in relationship couples, sisters or friends are not eligible.