A joint loan is a loan taken by two or more people in the joint name for the loans being availed. A joint home loan helps to ease the burden on the borrower. The borrower can avail of the joint loan name by adding the additional name of the spouse as a joint co-owner of the property. In the case of joint home loans, both the borrower’s salary is considered, and accordingly, the home loans are approved. The maximum amount up to which home loans can be supported is Rs.3.50 crores; however, the actual approval of loans depends upon the borrower’s salary. The CIBIL rating also of both the owner and the co-owner is required to approve the home loans. The maximum tenure up to which the loans can be availed is 30 years. Also, the actual approval of the term depends upon the age of the borrower. The minimum age criteria set by the bank is 21 years, and the maximum is 60 years until the end of the repayment tenure. The maximum age limit is 65 years for the self-employed if a profitable business is running for years.
The joint loan in the spouse’s name can help the borrower avail the loans at lower interest rates. Also, the rebate on the registration charges is being given to the borrower in case of the joint name of the women in the property. Lower interest rates are being charged to the borrower. The loans can be availed on the joint name, taking into consideration the couples’ salary. Suppose one single person is found to be incapable of helping the loans. In that case, the other person can compensate for the eligibility as the addition of two people’s salary is considered. Also, as a couple, both persons enjoy the benefit of the ownership of the property. The borrower can avail of loans from any of the lenders of their choice, which has liberal and customer-friendly terms and conditions and charges lower interest rates and processing fees. The tax benefit availed by the borrower is also higher in the case of joint home loans being obtained.
Following are the benefits of availing home loans with a joint name along with joint owner as women:
Income tax benefit on Joint name
The borrower if avails loan on the joint name, then dual tax benefits can be availed by the property buyer. The joint name can help the borrower higher amount on income tax as the additional exemption of Rs.2 lakh is given to the borrower beyond the tax slab of Rs.2.5 lakh exemption limit. Opting for a dual tax benefit is beneficial in the case of two people earning income.
Increased eligibility of Home Loans
In the case of dual-income of the couple, the dual benefit can be taken by the couple as the couple’s joint salary is taken into consideration while applying for the loans by the borrower. Thus the higher credit availability means the borrower can purchase the better home at a better location or else at a larger size of home.
Lower interest rates charged by the borrower against women as a co-owner
The women are charged lower interest rates on the home loans of 0.50% of the interest value. As the home loans are calculated on a cumulative basis, even the lower interest rates can benefit
with higher benefit to the borrower. Thus the savings can be higher for a flat buyer in case of lower interest rates being charged.
Lower stamp duty against the women as a co-owner
In the woman’s case as a co-owner, the flat buyer is charged with lower registration stamp duty charges. Though different states charge different registration charges, a 1-2% discount is given to the flat buyer in women as co-owners.
Thus, we can conclude that having a joint property owner can help the borrower avail loans at lower interest rates and save on registration charges & stamp duty being charged by the borrower in women. Thus it is recommended that for a married couple, the woman as a co-owner is beneficial in joint name. Banks provide higher eligibility of loans with a higher value for the loans provided if both the persons as a couple are amongst the working professionals and are availing loans on joint names