Joint Home Loan

You can avail Joint Home Loan with an Interest Rate Starting @ 8.50% per annum.

A joint home loan is a housing loan that is taken by more than one person and can be repaid with equal financial responsibility. Any of your immediate family members, including your spouse, parents, and siblings can be the co-applicants for the joint home loan.

Buying your own house is perhaps one of the most significant financial decisions you would make in your lifetime. While finding your dream house is a tough task, managing the finances for buying it is equally challenging. With real-estate prices skyrocketing these days, most people prefer opting for a home loan to buy their dream home.

However, certain factors such as low credit score or low annual/monthly income, might not qualify you for the desired loan amount. But, if you have a working partner, you can opt for a joint home loan together to avail a higher loan amount.

Joint Home Loan Interest Rate and Charges

The interest rate and charges applicable on joint home loans vary from lender to lender. The following table gives an estimate of the interest rate and charges applicable on joint home loans from most lenders:

Joint Home Loan Eligibility Criteria

Just as the interest rate and processing fee, the eligibility criteria for a joint home loan is also different for different lenders. The general eligibility conditions for a joint home loan are as under:

• The borrowers must be a citizen of India.

• The age of the borrowers must be between 22 and 62 years (for salaried applicants) or between 28 and 70 years (for self-employed applicants).

• Salaried applicants must have a minimum of 3 years of work experience while self-employed applicants must have a minimum experience of 5 years.

• The CIBIL score of the applicants must be upwards of 750.

Learn more about House Loan Eligibility.

Documents Required for a Joint Home Loan

In order to avail a joint home loan, you need to provide a certain set of documents to the lender. Here is a handy list of documents that you might have to submit to the bank/NBFC:

• KYC documents

• Employee ID Card

• Salary slips of the last three months

• Bank account statement for the last three months

Conditions for a Joint Home Loan

You must satisfy the following conditions before you can apply for a joint home loan from a bank/NBFC:

• You can have a maximum of 6 co-applicants and a minimum of 2 co-applicants for a joint home loan.

• You can take out a joint home loan with your spouse, children, siblings or parents. A joint home loan can not be availed with any random individual including your friend or business partner.

• Each co-applicant has to fill in a separate application form and provide individual documents for the same loan.

• Repayment for a joint housing finance plan can be done either through a joint account of the co-borrowers or by splitting the EMI equally or proportionally among them. You can opt for a cheque or electronic clearance/standing instruction to your bank, as per your convenience.

How to Apply for a Joint Home Loan?

Applying for a joint home loan is a simple and hassle-free process. You can easily apply for a joint home loan at Bajaj Markets by following the steps mentioned below:

• Step 1: Visit the Home Loans page on the Bajaj Markets website.

• Step 2: Click on “Apply Now”. A new page will open with a form in which you need to fill in a few details.

• Step 3: Enter some basic details like your income, type of employment and contact number.

• Step 4: Enter the OTP sent to your mobile number in the designated field to verify your contact number.

• Step 5: Enter the desired loan amount and tenure.

• Step 6: Once you have provided all the aforementioned details, our representative will get in touch with you shortly to guide you on the further process.

Who can be a Co-borrower or Co-applicant for Joint Home Loan?

You can take a joint home loan with any of your immediate family members including your spouse, parents, children or siblings. NRIs are also eligible to be one of the co-applicants in a joint home loan application.

Co-applicant Documents for Joint Home Loan

All the co-applicants need to provide the following documents to the bank/NBFC along with their joint home loan application:

• Proof of Identity - Aadhar Card, PAN Card, Voter ID Card, Passport, etc.

• Proof of Residence - Aadhar Card, Voter ID Card, Passport, rent agreement, utility (electricity/telephone) bills.

• Last two years’ ITR or salary slips or Form 16.

• Property Documents - past title claims, sales deeds, conveyance deed, allotment letter, possession letter, latest property tax receipt, copy of approved construction/extension.

• Recent passport size photographs.

Check out other List of Documents Required for Home Loan.

Joint Home loan Benefits & Advantages

There are many advantages of taking out a joint home loan with a co-applicant over taking out a loan without any co-applicant. Here are some of the benefits that joint home loans offer:

• Tax Deduction - All the co-borrowers can claim the tax deduction separately on both the principal as well as the interest portion of the loan EMI under the Section 80(C) and the Section 24(B) of the Income Tax Act.

• Improved Eligibility - If you apply for home loan with a co-applicant who also has a regular source of income, you become eligible for a higher loan amount. You can also negotiate for better loan terms with the bank/NBFC, for example, you might become eligible for a longer loan tenure.

• Less Registration Fee/Stamp Duty - If you are applying for a joint loan with a female co-applicant, you can also get a significant concession on the stamp duty and registration fee as many states charge a lower stamp duty and registration fee from women.

Share of Ownership

Each of the co-borrowers is jointly and severally liable to repay the loan with applicable interest, regardless of their share in the property. As a result, if one co-borrower misses a payment, the other co-borrower(s) are supposed to make up for the same.

As far as the income tax exemption is concerned, If the property agreement does not state otherwise, it will be assumed that each co-owner owns an equal share of the property. Furthermore, the total exemption claimed by all co-borrowers cannot exceed the actual payment made to the bank.

Joint Home Loan with Working Wife

If you apply for a joint home loan with your working wife as a co-applicant, you get a host of benefits such as:

• You and your wife together can claim an income tax deduction of up to ₹7 lakhs on the EMI payments under the Section 80(C) and Section 24(B) of the Income Tax Act.

• You also get a concession on the registration fee and the stamp duty if the property is registered in the name of your wife as many states charge a lower stamp duty/registration fee from women.

• You become eligible for a higher loan amount as two earning co-applicants increase the creditworthiness. Moreover, you can also negotiate for more favourable loan terms and conditions such as a lower interest rate or a longer tenure.

Know more about Home Loan for Women.

Joint Loan with Non-Working Wife

There are not many benefits for availing a joint home loan with your wife if she does not have a regular source of income. However, you can still get the concession on the stamp duty/property registration fee that many state governments offer to women if the property is registered in the name of your wife.

Joint Home Loan with Parents

You can add your parents as a co-applicant if your income is insufficient to obtain the desired amount of home loan. Your home loan tenure is the most important factor in a joint home loan with your parents. The term may be limited to your parent's retirement age; as a result, your EMI amount may be higher and the loan amount may be lower.

Joint Home Loan with Siblings

If you apply for a joint home loan with your sibling(s) who has a regular source of income, you get a number of benefits:

• All the applicants can claim tax deductions separately under the Section 80(C) and Section 24(B) on the IT Act.

• You become eligible for a higher loan amount as the creditworthiness increases since there are more than one earning co-applicants.

• You can also negotiate for more favourable loan terms with the bank/NBFC such as a lower interest rate or a longer tenure.

• If one of the siblings is a female, you can also get a concession on the stamp duty and the registration fee of the property as per the statutory norms.

Joint Home Loan with Friend

Banks/NBFCs do not entertain joint home loan applications with two or more friends as co-borrowers. You can apply for a joint home loan only with your parent(s), children, spouse or siblings.

Tax Benefits on Joint Home Loan

One of the major advantages of a joint home loan is that all the applicants can claim tax deductions separately as per Section 80(C) and Section 24(B) of the Income Tax Act. Under Section 80(C) of the IT Act, a home loan borrower is eligible to claim a tax deduction of up to ₹ 1.5 lakhs on the principal portion of the loan EMI and under the Section 24(B) of the IT Act, the borrower can claim a deduction of up to ₹2 lakhs on the interest portion of the EMI. Also, check out other Joint Home Loan Tax Benefits that an applicant can claim.

Repayment of Joint Home Loan

Each of the co-borrowers can give an ECS mandate of their bank accounts to repay their home loan. You can also choose to give an ECS (Electronic Clearance Service) mandate from the first applicant's bank account for ease of administration, and the second applicant can repay the first applicant. As long as you pay your EMI in full and on time, the bank/NBFC will give you repayment flexibility. However, it is worth noting that regardless of whether an ECS mandate or advance cheque has been issued, it is the responsibility of both the applicants to repay the loan. The bank uses the phrase "each applicant is jointly and severally liable" when referring to home loan repayment.

Loan tenure

Apart from the usual factors such as credit score and monthly income, there are a few other factors that influence the tenure of a joint home loan. The tenure of a joint home loan depends, to a large extent, on the age of the oldest co-applicant. For example, if you are applying for a joint home loan with your parents as co-applicants, the tenure of the loan shall be limited by the age of retirement of the parents. Similarly, if you apply for a joint home loan with your earning spouse, the tenure of home loan may be limited by the age of retirement of the older co-applicant.