Home Loan

Want to Take a Joint Home Loan with a spouse?


Buying a home is a big step. One should be aware of many things. Various banks and financial institutions offer home loans. These loans are used to raise funds for buying a house. The interest rates of these loans are affordable and attractive. A joint home loan is a housing loan that can be shared with a partner. Choosing the right home loan is a must and should be done carefully. The right home loan can save money and decrease the amount of debt. 

Everything you need to know about a joint home loan. 

A home loan is a partner loan to buy a home together. The payment is done equally on both parts. The co-applicant can be a spouse, a family member, a sibling, or any close relative. A joint home loan has more chance of being approved than loans applied for in an individual capacity. A joint loan can be taken in joint names. These joint loans will provide a higher amount of money. Also, If the customer wants to save taxes, they should go for a joint loan. The tax savings are much higher in the case of joint loans than in the case of an individual name loan. 

Benefits of a joint home loan 

  1. Applying for a joint home loan with a close family member like a mother, sister, daughter, a spouse comes with a significant advantage. The registration fee for these joint loans is relatively low. Some States will offer low property registration fees if the property is named under two individuals. 
  2. Legal procedures are more accessible and reduced. Succession and other issues are also less when husband and wife jointly apply for the home loan. 
  3. The loans offered by the banks are higher in the case of joint loans. It is because the bank will combine the income of both parties applying for the joint home loan. The amount of loan sanctioned by the bank will be much higher in standard loans than in individual cases. Banks’ loan amounts are higher because both parties’ repayment capacity will be higher.  There will be more than one person who can repay the loan. The loan amount increases as per the income of the co-applicant. The organisation’s reputation in which they are employed also plays an important role. 
  4. The repayment of the EMI in the case of a joint home loan is also more manageable. It has to be made from the joint account used by both parties. This helps keep track of the repayment and equal contribution made for the loan. 
  5. If the payment is not done or an applicant cannot pay the loan back in due time, the bank or the applicant need not worry about defaulting on loan payment. The co-applicant will be equally responsible for paying the EMI. If one applicant cannot pay, the price goes to the other applicant. And then, the other person will be obliged to pay the rest of the monthly instalments.

Why Take A Joint Home Loan With Spouse? 

A home loan is a significant investment. It is one of the most enormous loans one person will take in life. The upcoming development has increased housing costs. Real estate prices have skyrocketed. The better the city, the costlier the houses. This is why a joint home loan is an excellent way to raise funds to buy a house.  A common home loan will give the customers the money they want to buy the house. These loans offer a considerable amount of money. The repayment can be shared between two parties. It will help ease the burden on the individuals. A general loan may not be the best way to buy a house. The loan might get rejected if the customer’s salary is not enough. Hence, a joint home loan, in these cases, is the best option for buying a house.

Conditions and eligibility criteria for a joint home loan 

  1. A joint home loan can only be taken with close relatives. A friend or a business partner will not work. Both parties should have close relationships like siblings, spouses, children, or parents. A joint home loan cannot be taken with a random person.
  2. The co-applicant needs to be an earner too. The amount of the loan and the tax savings will be higher. The joint applicant can be a salaried, self-employed businessman or any other professional worker. 
  3. A maximum of 6 people can jointly apply for a joint home loan. The minimum is 2.
  4. Tax breaks will only be available after the construction work is complete. If the property is under construction, the tax breaks will start after living there.
  5. Even if only one party is at fault, a disagreement or unsuccessful loan repayment will affect both parties.
  6. Repayment of the joint home loan can be done through the joint account of both parties. It can also be paid by splitting the EMI proportionally among them.


To wrap up, if one is looking to buy a home, a joint home loan would be the easiest and most convenient way to raise a large amount of money. The interest will be less, and the repayment process will be accessible in the case of a joint loan. It will give higher eligibility for the finance scheme and provide tax breaks. A home loan has many advantages which a typical loan doesn’t have. Customers can contact Piramal Finance if they need more personal loans or financing options.