What are Joint Home Loans? Eligibility and Documents Required for It

Buying a home is a huge financial investment that most of us need support for. While a home loan is always a good option, your financial position can sometimes take a hit with repayment. In such cases, it often makes more sense to take out a joint home loan instead of a regular one.

With a joint home loan, you can share the burden of the loan with a co-borrower such as your spouse, family member, or a friend, making it easier to repay the loan. More than two applicants can also take out a joint housing loan together and share the responsibility of repayment.

Why Should I Take Out a Joint Home Loan?

• A joint home loan has multiple benefits that a regular home loan does not provide, mostly related to income and tax benefits
• The joint income of all co-applicants is considered when calculating the tenure and amount of the loan
• A joint home loan comes with increased eligibility and a greater budget, which can be used to buy a bigger house or one in a better location than an individual can afford on their own
• The repayment of the loan is shared between all co-borrower. It can be made either jointly or individually according to one’s convenience
• If all co-applicants are co-owners of the property, tax benefits can be enjoyed by all of them separately, including:
  • Tax deduction on principal repayments (up to Rs. 1.5 lakhs) under Section 80 C of the Income Tax Act
  • Deduction on interest payments under Section 24, up to Rs. 2 lakhs if the home is self-occupied, or without limits if it is rented out

Am I Eligible?

• Your co-borrowers can include your parents, spouse, or siblings. Joint home loans are generally not offered to strangers or people who are not family. In some cases, a lender will accept a friend as a co-borrower
• All co-borrowers must have a source of income, i.e. they must be either salaried or self-employed
• A maximum of 6 persons can apply for one joint loan
• In many cases, co-borrowers are also required to be co-owners of the house unless the co-borrowers are married
• The term of the loan is restricted to the retirement age of the oldest applicant

What Documents Do I Need?

• Identity proof, such as Aadhar card, PAN card, etc.
• Address proof, such as Aadhar card, rent agreement, etc.
• Income proof, such as bank statements and salary slips
• Proof of co-ownership (if required)
• Property documents

Additionally, all co-applicants are required to submit these documents for them to be considered for the joint home loan.

With Tata Capital, both regular and joint home loans are hassle-free. Tata Capital housing finance offers the most flexible home loan eligibility criteria and repayment methods. Our home loan interest rates start at just 9.25% with a loan amount as high as Rs. 5 crore. With a Tata Capital housing loan, you are never too far from owning the house of your dream – apply for one today!