HomeFinancePersonal FinanceHome loan: How to boost your dwelling loan eligibility

Home loan: How to boost your dwelling loan eligibility

It is less complicated to get approval for a joint dwelling loan with a spouse, or a joint loan with other close relatives, such as parents, siblings, and young children.

Home loans are secured and easy loans and can be repaid more than a period of time, via the EMI solution. The present dwelling loan interest prices have sunk to nearly a 15-year low of 6.75-6.80 per cent on amounts up to Rs 30 lakhs.

Due to revenue restrain or low credit score, higher debt-to-revenue ratio, or any other failure to meet the loan eligibility criteria, if one is denied the quantity that he/she desires to borrow, taking a joint loan with a relative, increases the eligibility to get that loan. Also, as dwelling loans are typically huge ticket size loans, several people favor taking a joint dwelling loan.



Industry specialists say it is less complicated to get approval for a joint dwelling loan with a spouse, or a joint loan with other close relatives, such as parents, siblings, and young children.



Going for a joint dwelling loan with a co-applicant who has a superior credit profile can enhance the possibilities of the borrower’s loan receiving authorized, at the exact same time get eligible for a larger quantity.

For some banks, it is also mandatory to have a co-applicant for a dwelling loan, whereas some lenders insist on the co-owner also being the co-applicant. Note that this does not imply that the co-applicant has to be the co-owner. A co-applicant is liable for repaying the loan, in case the major applicant is unable to service it, when a co-owner of house shares the house with somebody else. Therefore, taking a joint dwelling loan with a spouse or a relative comes with its personal rewards and perks.

As compared to a joint loan, for an person loan, the borrower will be provided a loan limit which will be a lot decrease. For instance, a borrower can get loan quantity could go up to Rs 60 to 70 lakhs if combined with the relative/spouse’s limit, whereas individually he/she would have been eligible for a loan of Rs 30-40 lakhs.

Along with that, borrowers also get more concessions on their dwelling loan. For instance, if the wife is the major applicant for the dwelling loan, the loan can come at a more affordable price, as most banks give decrease interest prices to ladies borrowers.

Borrowers can also appreciate elevated tax rewards, and most people opt for a joint loan just to avail the tax rewards. For instance, in case of a joint dwelling loan with spouse each the spouses separately appreciate the Section 80C tax advantage of Rs 1.5 lakh on the principal quantity. Hence, jointly the tax advantage limit is elevated to Rs 3 lakh below section 80C.

Additionally, with joint dwelling loans below Section 24 on interest paid for a self-occupied home, the deduction of Rs 2 lakh gets elevated to Rs 4 lakh.

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