Things to know about a joint home loan | Fusion - WeRIndia

Things to know about a joint home loan

Things to know about a joint home loan

To achieve a dream home, many people avail home loans. It helps you procure funds without withdrawing savings while availing income tax benefits. In this context, people opt for joint home loans. Even some banks also insist for co-applicant.

A joint home loan helps you share the burden of loan repayment. Besides, both the applicants can avail tax benefits.

Here are some important things to know while opting for a joint home loan:

  • Do you know that there can be up to 6 co-applicants while opting for a joint home loan? If you want a huge amount of loan and have a repayment capacity, then you can consider this option. Many lending institutions provide this option.
  • While opting for a joint home loan, a question comes to your mind that who can be your co-applicant.
  • Parents, spouse, son, and unmarried daughter can be your co-applicants for a joint home loan. However, many people consider their parents or spouse as co-applicant since it is a convenient approach. It also helps manage your liabilities jointly.
  • Before proceeding, try to understand the consequences of taking a joint home loan.
  • Banks consider the income of co-applicants. Hence, it helps you get higher loan eligibility. However, the liability of repayment also distributes between the co-applicants.
  • The repayment of a joint home loan impacts the credit history and CIBIL score of all the co-applicants. So, all the applicants have to share the burden of the loan as per the agreed terms.
  • If you are a co-applicant, you should also note that you have to repay the loan if your partner defaults. In other words, if a primary applicant defaults the repayment, co-applicant will have to take the responsibility of repayment of the loan. That’s why banks check the CIBIL score of co-applicant also. If their credit score is low, it may adversely impact your loan application.

So, before opting for a joint home loan, you should consider all of these things.

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