Monday, April 28, 2014

Get A Rewarding Deal on Joint Home Loan

Majority of the people in India who wish to invest in real estate property invariably rely on home loans to get the required funds. If you are looking for home loans you can consider applying for joint home loan instead of opting for an individual loan.  You can apply for a home loan jointly with your spouse or with any other family member including mother, father and brother.  Apart from your family members you can apply for a joint home loan with six co-applicants. A major advantage of taking joint loan is that it only allows you to share the burden of repayment but also allows you to get a higher loan so that you can buy a better property. 

Who can be co-applicants?
You can obtain joint home loan with your parents, siblings or spouse. You can not apply for joint loan with any person, you either need to be married couple or you must have blood relation with the co-borrower. There are certain HFCs in India that allow siblings (brothers) to apply for home loan on a joint basis provided both the applicants are joint owners of the property.

Generally, the financial institutions in India do not allow friends, unmarried partners and sisters to apply for joint home loan. If you are applying for joint home loan with your spouse then the maximum loan term can be 20 years, whereas, if you are applying for children, sibling or parents, the maximum tenure is 10 years.
Documents Required for Loans
The documents required for joint home loan varies from lender to lender, however, there are certain basic documents that all HFCs consider. The documents are:

- KYC (know your customer) form
- Income proof of all co-applicants- Identity and address proof of the co-borrowers- Proof of co-ownership of the property

What is the tax benefits associated with joint home loan?
Joint home loan is beneficial from the tax point of view. Under section 24 and Section 80C of the Income Tax Act, the co-borrowers can claim tax rebate on the interest as well as the principal amount repaid. 

Repayment of Home Loans
The repayment procedure for joint home loan is similar to the normal home loan. You can either pay through individual’s account or from joint bank account. You can also pay through ECS or electronic clearing system. Another alternative way to repay the loan is to share the EMIs with your partner in a way that repay the EMI for a specific number of months and the other person will pay for the balance months. 

At Indiabulls Housing Finance ltd, you can be assured of full support from our expert staff. We would guide you through the process and help you get the best deal. 

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