Home Loan

Benefits of taking a joint home loan


India is a well-known traditional country for its joint family living culture. People have a strong belief in joint family living culture. But it requires big homes for all members.

Buying a big house requires a good amount of money. Well, taking a loan is a great option, but what’s better? A joint home loan is a way better option as it brings attractive benefits.

A joint home loan helps you buy your dream home for your whole family. The benefits of a joint home loan include divided responsibility, repayment options, and much more.

Let’s read the article to learn more about joint home loan benefits. 

What is a joint home loan?

Two individuals take a joint home loan as applicant and co-applicant. Buying a big home requires a large amount of money, which means a high financial burden on one individual. 

A joint home loan divides the financial pressure into two people with easy repayment options. This way the burden turns into responsibility and is easy to pay back. 

However, a joint home loan has a few terms to follow. Look at the important terms and benefits of a joint home loan.

Who can be the co-applicant?

If you want to apply for a joint home loan, check who can be your co-applicant.

  • Close relatives (they) in your family are eligible to be a co-applicant in a joint home loan. The relative is not necessarily to be a co-owner of the property.
  • The Co-owner (they) is eligible as a co-applicant for a home loan, not necessarily to be a close relative.
  • Non-resident Indians (NRI) can also become co-applicants in a joint housing loan.

Key benefits of joint home loan

Sharing the loan amount with a co-applicant helps in applying for and repaying the home loan. Check out the key benefits of the joint home loan-

Higher loan amount eligibility

The number one benefit of a joint home loan is higher loan amount eligibility. The combined income of two individuals brings more trust to the lender. More amounts can bring you the bigger house of your dreams.

You can choose any house in any locality with a higher loan amount. Buying a house is a lifetime opportunity, so it does not compromise the budget. Because falling short on a budget is not a tension anymore. 

Tax benefits

The joint home loan helps individuals save on tax expenses. If the Co-applicant is also a Co-owner of the property, you can ask for separate tax relaxation. 

Under section 80C of the Income tax act, an individual can claim compensation on principle and interest repayment. The compensation amount depends on the share of ownership of applicants.

Multiple repayment options

In a joint home loan, the loan repayment amount is divided between the applicant and the co-applicant. The amount is divided into EMIs depending on ownership share. 

The thought of sharing loan amounts makes the repayment easy for applicants. Either your spouse or close relative involved in sharing the burden makes you more responsible toward timely repayment. 

You may pay the loan earlier than decided and be set free from responsibility. Two incomes combined help pay small EMIs at a decided time.

You can discuss and divide the EMIs to ease with the co-applicant. Instead of taking a home loan and paying in 25 years, pay your joint home loan in 20 years with peace of mind.

Compensation in interest rate for women.

In a joint home loan, women get relaxation in interest rates. Women need to be the sole owner of the property for maximum benefits. They can be applicants or co-applicant in the joint home loan application. Check the interest rates and compare for the best benefits.

Documentation and Eligibility for Joint home loan

You can check the eligibility for a joint home loan at your preferred bank. The relationship with the co-applicant must be close to avail easy sanctioning of a home loan. Prefer your spouse, sibling, or parents as co-applicant. 

After selecting a co-applicant, prepare the documents as per bank requirements. Check out the list of documents-

  • Identity proof (Aadhar Card, Pan Card, Voter ID Card, passport, or driving license).
  • Address proof (Electricity or utility bills, Aadhar Card, and passport).
  • Income proof (Income statement or Income tax return slips).
  • Property sale legal document and NOC statement.

These are the most important documents for a joint home loan application. The borrower and co-applicant have to submit the documents separately. 

Keep the original copy of the document to attest to the authenticity while applying for a business loan.

The credit score of the applicant and co-applicant must be good. A good score allows fast approval and sanctioning of the higher loan amount. Several banks allow individuals to check their credit scores and provide improvement tips. Check your credit score via CIBIL, Equifax, and CRIF Highmark. You can improve your credit score by following simple steps if your credit score is low. 

The most popular way is the CIBIL home loan score; it helps in knowing the perfect score for a home loan application.

Check your home loan eligibility.

You can easily check the eligibility for a home loan by using a special tool. The home loan eligibility calculator tells about loan limits according to income. It is free and easy to use for everyone. You need to fill in a few details, and there you know the funding amount. The details include the following:

  • Interest on loan.
  • Tenure of loan.
  • Gross income.
  • Liability, EMIs, and expenses.

Open the home loan eligibility calculator and put in the details as asked. Press the check button and that’s how you can check the funding. 

Also, include your co-applicant details for a joint home loan and avail of the benefits. 

Women as co-applicant in the home loan bring benefits like tax relaxation and low-interest rates. 

Operate one loan at a time to keep the burden off your mind. 


If you’re compromising your dream home due to a lakh shortage, apply for a joint home loan. A joint home loan is easy to apply for and brings benefits like a higher loan amount, tax relaxation, and easy repayment. 

A joint home loan frees you from the burden, and repayment becomes easy for the applicant and co-applicant. From the above article, learn how to check eligibility, key benefits, and documents for a joint home loan.

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