Monday, March 10, 2014

Benefits of Availing Joint Home Loan

When people look for home loans, one of the most important question they have is, whether to take a loan individually or apply for a joint loan. A joint home loan as the name suggests is taken by two people together. In today’s time when the prices of the real estate property are skyrocketing, availing joint home loan is a wise thing to do  to own a home.

In present times, joint home loans are becoming extremely popular among Indians as majority of the individuals find it difficult to afford repaying the loan. Also, in various cases individuals find it difficult to get sufficient amount of loan required to buy the property of their choice. In such circumstance, it is best  to apply for joint home loan. You can apply for a joint loan either with your spouse or any other relative. This has various benefits over loans applied by individuals. The top benefits are discussed below:

•    You can  borrow more money
When you apply for a home loan, the housing finance companies consider the income, employment status, financial credentials and credit history of the applicants. The total amount of loan the lender approves will be based on these factors. Also, the lenders approve loans based on their assessment of your ability to repay the loan. It is quite obvious then that your income and financial credentials would  improve if you are applying for home loan on joint basis. When you apply for loan jointly, the lenders would consider the income of both the applicants, making you eligible to borrow more money.

•    Tax benefit
The home loan tax benefits that are applicable on home loans under section 80 C and Section 24 of the Indian Income Tax Act is extended to both the partners. Under these sections, each borrower is eligible to get a maximum deduction of Rs. 1 Lakh and Rs. 1, 50,000 on the principal amount and the interest payable on the loan. Thus, in a joint loan scheme, you would get a total deduction of Rs. 2 lakhs on the principal amount and Rs. 3 lakhs on the interest amount.

•    Easy repayment
The re-payment process for joint home loan is similar to loans availed by individuals. Even though two people apply for the loan, the housing finance companies do not accept two cheques for the same EMI. You can make your payment through your joint bank account. Also, the joint loan eases the burden of EMI on individuals; you can either share the number of EMIs among yourselves or contribute equal amount every month towards repayment.
Thus, it is quite obvious that a joint home loan has many benefits over loans for individuals. If you are availing home loans from Indiabulls Housing Finance Limited our expert executives would help you understand the various benefits and guide through the various process of availing joint home loan.

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