banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

Why Do You Need A Joint Home Loan?

By IIFL Home Loans | Published On Feb 10 2017 11:45 AM 2 min read 40 views 2969 Likes
Share on
IIFL   Home   Loans   -   Why   Do   You   Need   Joint   Home   Loan

Let us consider the following scenario: Ajay Kumar Mishra was working in a Pvt. Ltd. company. To purchase his dream home, he applied for a home loan with a lender. Owing to a low CIBIL score, the lender turned down his application. He reached out to a housing finance expert for suggestions. The expert suggested to him to apply on a co-applicant basis after he came to know that Ajay wife was employed. Acting on the suggestion, Ajay approached again for the same product at the same lender and this time, his application joint basis was accepted and processed.

There are many aspirants like Ajay who face rejection because of their low CIBIL score. In the case of a rejection, a co-applicant can work wonders. So, how a home loan co-applicant can help us

So, we have now seen that joint home loan has multiple advantages. However, while going for a joint home loan, take care of the following points:

Take it easy! You can avail home loan with the help of a co-applicant. Availing a home loan with a co-applicant has its own advantages. Certain important things, mentioned above, need to be taken care of before making out an application.

  • Enhancing the eligibility As evident from the above case, applying with a co-applicant can help you in approval of your mortgage. While computing eligibility, the income of both the applicants is considered in the case of a joint loan. In this context, it is indispensable to note that only some specific relations are considered for co-applicants. Generally, banks and NBFCs accept parent, spouse, brother, as home loan co-applicants. The increased eligibility will help you own a big house.
  • Mitigating the Risk When someone becomes the co-applicant in a home loan, the risk is segregated equally between the partners. The co pplicant is equally liable for the repayment of the loan along with the buyer.
  • Tax Benefits for both applicants- At the end of the financial year, we can see people discussing tax benefits, tax savings. Interest paid on a housing loan is a major component in tax saving. In the case of a joint home loan, both applicants are eligible to claim tax benefits on interest paid.
  • Special Schemes f we avail home loan under em>Credit Linked Subsidy Scheme Pradhan MantriAwasYojana CLSS-PMAY or a href="">Swaraj Home Loan schemes, female ownership is mandatory in property ownership and home loan structure. These schemes are oriented towards the benefit of women and encourage a joint home loan with women.
  • A distinction between a Co-applicant and a Co-owner A co-applicant is one, who applies with the borrower for a loan. A co-owner is someone, who has an ownership in the property.
  • Submission of documents All the co-applicants need to furnish all the required documents for home loan processing. The documents include PAN copy, bank statements, income proof documents and property papers.
  • The co-applicant should be working If the co-applicant is working, then only the chances for home loan approval increases.
  • Number of Applicants Joint home loans are possible with 2 to 6 applicants.
  • Payment of EMI Lenders prefer to receive home loans EMI payment through a joint bank account. However, co-applicants can pay the EMI through separate cheques also.
Share on


apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.