For Quick Alerts
For Daily Alerts

Joint home loans: Why you should opt for them?

Joint home loans: Why you should opt for them?
Looking at taking a home loan? Do not forget one choice that you must make if you can - that is to opt for a joint home loan with a co-applicant.

There are many reasons for the same. The first and paramount one is that you can get a higher loan amount sanctioned, if you need the same.

For example, if the husband and wife both are working, then a joint loan would enable them to get a higher loan based on income of two persons and not one. Even if the wife is not working and has interest or other income, she can still be a co-applicant for a home loan.

Also read how to claim tax benefits on home loans?

The second and other important thing is the tax benefit. Under section 80C of the Income Tax Act, Rs 1 lakh can be deducted from personal income tax for principal payment on home loan (Rs 1 lakh is overall cap for all deductions under this section). This means that if you are paying principal amount payment of Rs 1 lakh a year, you don't have to worry about putting money in other instruments like PPF, LIC etc.

Also, an amount of Rs. 1.5 lakhs can be deducted on interest payment on home loan, under section 24. So, together both the applicants can avail a maximum tax benefit of Rs 5 lakhs on a home loan, as against Rs 2.5 lakhs, if there was no joint applicant.

It's important to note that the structure should be in such a manner that you get maximum tax benefits.

In case of a joint loan, the husband can apply along with the wife or a father and son could apply. It's important to note that the c-owners of the house can only be co-applicants to the loan.

Read more about: home loans joint home loans
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more