Owning a home is a lifetime investment. Due to the growing repayment capability of the young generations of India, a home loan is becoming the most preferred mode of finance while buying a house. However, the approval of a loan solely depends on the applicant’s profile such as age, income, credit history, and the capacity to repay the loan.
How to improve loan eligibility
Higher home loan eligibility offers multiple benefits. Joint home loans with co-applicants help in improving your loan eligibility. In a joint home loan application, the eligibility is improved by the co-applicant’s independent source of income and credit history. This also improves the repayment power of the applicants in the loan documents. In a joint home loan, family members or relatives may become the co-applicants. There is a fundamental difference between a co-owner and a co-applicant. Co-owners must be the co-applicants in a joint home loan application, but co-applicants need not be the co-owners.
Why is a joint home loan preferred?
In addition to improving the applicant’s loan eligibility, a joint home loan offers three key benefits:
- Higher loan eligibility Taking into consideration the co-applicant’s repayment capacity and an increase in total income, joint home loan applicants get access to higher monetary assistance. It helps them in buying a better and more comfortable home.
- Additional tax benefits In a joint home loan, co-owners of the property enjoy tax benefits individually under the Income Tax (IT) Act, 1961. In such home loans, the collective tax benefits are higher. The co-owners are eligible for the below-listed deductions at an individual level.
- Under Section 80C, co-applicants are eligible for a deduction up to INR 1.5 lakh in the repayment of the principal amount.
- For a self-occupied property, the co-owners enjoy tax deductions up to INR 2 lakh under Section 24.
- If the property is rented out, the complete interest amount is eligible for deductions.
- Special interest rates for women co-applicants At Indiabulls Home Loans, we offer flexible and slightly lower interest rates to the women co-applicants. To avail of the benefits of lower interest rates, the woman must be a co-owner of the property. The submission of valid KYC documents such as proof of address and identity along with ownership deeds helps in quicker evaluation of eligibility.
In order to avail of such benefits quickly and smoothly, you must be ready with the required home loan documents that include the KYC, identity proof, and address proof among others.
Documents required for joint home loans
Below is a checklist of documents, which are necessary for a quicker and hassle-free home loan approval process:
General documents, which are mandatory for all applicants
- A passport-size photograph
- An appropriately-signed application form
- A valid proof of identity and address
- A check with the suggested amount of processing fee
- Original property documents
- An original copy of No Objection Certificate (NOC) from the builder
- A paid receipt of land tax
- A certificate of possession
Documents required for salaried applicants
- Appointment letter
- Form-16 for the previous two years
- Company-stamped salary slips for the last one year
- Bank statement for the past six months
- IT returns
Documents required for self-employed non-professionals
- Business registration certificate
- A proof of qualification
- IT returns with computation for the last two years
- Last two years’ balance sheet
- Profit and loss details for the last two years
Documents required for self-employed professionals
- Gumasta license
- A proof of qualification
- Last six months’ bank statement
- Profit and loss statement for the last two years
- Balance sheet for the last two years
A joint home loan is a great way to bring down the cost of a property and avail of higher loan eligibility. So, next time you are looking out for one, try applying for a joint loan to enjoy a range of benefits.