Buying your first home by taking a loan is a big decision, as it involves a huge responsibility of paying the EMI every month for a long time. This is the reason why many people prefer to take ‘Joint Home Loan’. If you are also thinking of taking a joint home loan with your partner, then understand the eligibility, tax exemption, benefits and precautions related to it in simple words… Question 1: What is a joint home loan and how does it increase loan eligibility? Answer: When two people like husband and wife apply for a home loan together, it is called ‘Joint Home Loan’. In this, the bank looks at the income of both and their ability to repay the loan together. For example, if a loan of up to Rs 30 lakh is available against the salary of only one person, then this limit can increase to Rs 50 to 60 lakh if the income of both is combined. Question 2: Is it a right decision to take a higher loan amount when taking a joint home loan? Answer: Not at all. Higher eligibility does not mean that you take the entire loan amount offered by the bank. Before deciding the loan amount, the couple should check how much EMI they can comfortably pay every month without affecting other household expenses and old loans. Question 3: What are the main benefits of taking a joint home loan? Answer: It has three main benefits: There are three main benefits of taking a joint home loan: Question 4: What is the impact of joint loan on repayment and credit score? Answer: Joint home loan is a joint responsibility of both husband and wife. Even if it is decided amongst themselves as to who will pay the EMI, both are equally responsible for the bank. If the installment bounces due to any reason, it has a negative impact on the CIBIL scores of both husband and wife. Question 5: What should be kept in mind about the ownership structure of the property before taking a joint loan? Answer: Before taking a joint loan, husband and wife should clear these things between themselves: Question 6: If the income of one of them stops in future, then how to prepare for it? Answer: In case of sudden stoppage of income, loss of job or loss in business, it is necessary to take two steps: Question 7: What things do banks check before giving final approval for joint loan? Answer: Before approving a home loan, banks mainly check these 4 things:
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Joint home loan will increase your loan limit: Both will get tax benefits; But if the installment bounces, the CIBIL score of both will fall.
