Joint home loan is more advantageous than single loan

To increase the eligibility individuals can apply for a joint home loan. The most significant benefit of joint home loan is that the loan amount increases for purchasing the dream home. Moreover all the joint home applicants can avail tax rebates under Section 80C for principal repaid and under Section 24 for interest repaid. But these tax deductions are capped at 1lakh for the principal repaid and 1.5lakh for the interest repaid.

Following are some of the benefits of joint home loan:

1. To increase the home loan eligibility joint home loan is most beneficial. Wife and husband, son and father, brothers can pool for joint home loan and this increases the loan amount.

2. All the applicants in joint home loan can avail tax rebates under Section 80C for principal repaid and under Section 24 for interest repaid and HRA deduction. Under Section 80C, you can get a maximum tax deduction of Rs 1 lakh on principal repaid and under Section 24 you can get a tax break of up to Rs 1.5 lakh on interest repaid.

3. Around 4 and 6 people can take joint home loan, depending on their credit profiles.

4. In case of joint home loan bank insist on one most important point that all co-applicants should be the co-owners of the property.

In some cases two brothers want to take joint home loan or brother and sister want to take loan. However banks prefer to give joint loan to husband and wife, or parent and child. Some of the banks allow brothers to take joint home loan but both should be co-owners of the property. Banks do not give joint home loan to sisters, friends or unmarried couples living together.