Home Loan

Top Benefits You Need to Know of Taking a Joint Home Loan


A home is your lifelong abode, a place where you spend a lot of time with your loved ones and make memories for a lifetime. Buying a home is one of the most important decisions in one’s life; hence, you want to ensure everything goes right. In such a case, taking out a home loan can prove to be a wise decision.

A home loan is a form of secured loan that is taken to buy a property by offering it as collateral. But you must realize that any loan is a liability. The principal amount borrowed needs to be paid back on time, along with the house loan interest rate, or it may lead to the liquidation of your assets.

Buying a home is a huge investment, and one might not have enough funds to make the payment all at once. If you have a co-owner on the property, you may opt for a joint home loan for additional benefits.

What is a Joint Home Loan?

joint home loan is a type of housing loan that can be taken out by more than one individual and repaid in a manner that makes both borrowers equally responsible for the financial obligation. The co-applicants to the mutual home loan could include family members such as siblings, parents, spouses, and/or children.

joint home loan offers many benefits, like shared responsibility for the repayment of the loan amount, eligibility to get a higher sanctioned loan amount, a lower house loan interest rate, and many tax benefits. The top 5 benefits of taking a mutual home loan in India are listed below:

Top 5 Benefits of Taking a Joint Home Loan

  1. Eligibility for a Higher Loan Amount: The primary advantage of a joint house loan is that you have a chance to receive an increased sanctioned loan amount. The lender will now consider two incomes rather than one when looking at your application. 
  2. Buying a home is a once-in-a-lifetime decision, and you would not want to compromise on it due to lack of money. Because both people applying for a loan will be eligible for tax breaks, this can also help with taxes on income from joint home loans.
  3. Low Interest Rate: To take advantage of low house loan interest rates, the person borrowing the money should think about adding their mother or spouse as co-applicants on a joint home loan application and as joint owners of a property.

Women borrowers have an added advantage in India because they can avail loans at a lower cost of interest. It generally ranges from 10 to 25 basis points less than the standard home loan rate for male borrowers. To benefit from this, women borrowers need to be the only owner or joint-owner of the house and be a co-applicant or applicant on the application for a home loan.

  1. Higher Tax Benefits: There are numerous tax advantages that you can claim when you apply for a joint home loan. Section 80C of the Income Tax Act enables the couple to get a tax deduction of as much as INR 1.50 lakh from the principal amount. Section 24 of the Income Tax Act permits the borrower to claim a tax deduction of up to INR 2 lacs for the interest payment to repay the home loan. 
  2. An individual taxpayer can claim the benefits of the tax deduction for a joint home loan. They are entitled to benefits of INR 3 lacs under Section 80C and INR 4 lakhs under Section 24 as a couple. It’s an excellent way to save money while repaying the loan on a regular basis. Note that the tax advantages in Section 80C can not be applied to a construction-related residential property.
  3. Ease of Repayment: The principal amount you borrow for a home loan should be paid back along with interest. The added advantage of taking a joint home loan is that the EMIs can be divided between the applicants. 
  4. You can make the payment either in one lump sum or via various methods, such as electronic clearinghouse or cheque. However, repaying a joint loan is the responsibility of both applicants. It is among the most important advantages of mutual home loans. 
  5. Special Rates for Women Co-Applicants: Having a woman as your joint home loan partner can prove to have many advantages. You can benefit from lower interest rates and a lesser percentage of stamp duty.

Most banks and financial institutions provide female co-applicants at a discounted rate, which is less than the general house loan interest rate. Furthermore, the government has stated that it will ensure that female lenders pay less stamp duty than male applicants. Many states, such as Delhi, UP, and Haryana, provide up to 2% less in stamp duty. It also enhances the benefit of a joint mortgage in terms of income tax.


Now that you have come across all the benefits of taking a joint home loan, we believe that you are equipped with enough knowledge to make an informed decision. Getting a home loan sanctioned can be the first step towards the home of your dreams. So if you are longing to have a place that you can call your own, a joint home loan can be your go-to option. At last, we wish you all the best and hope you make a wise decision. Piramal Finance can help you find the best home loan options and reasonable house loan interest rates that fit your budget.