While buying a home, many people find themselves in need of a home loan. But, availing a home loan involves various things. You will have to keep all the relevant documents like Aadhaar, Pan Card, salary slips, 3 years' IT returns, etc. in place. At times, even after having all the documents as well as earning the required CIBIL score, you might find yourself not eligible to avail the required home loan amount.  This can create a hindrance to buying a home which you have liked. It is but natural that you may wonder what to do next.

Well, the next possible solution to availing a quick home loan is a 'Joint Home Loan'. A joint home loan is a type of a housing loan, which allows you to avail a home loan jointly with another co-borrower.

Let's understand why a joint home loan can do wonders for home-buyers.

Enhanced loan eligibility:

One of the advantages of a joint home loan is that you can get a bigger amount sanctioned. This is because while computing the housing loan eligibility, the bank takes the income of both the applicants into account which further increases the amount of disbursement. For e.g., if you wish to buy a house which is valued at 50 Lacs, but individually you are eligible only for a home loan of 30Lacs. So, in such a condition when you have a salaried co-applicant whose annual salary can fetch him/her a substantial amount of home loan individually, it can help you to enhance the amount to be disbursed.

Sharing the burden:

When you and your co-applicant opt for a joint home loan, the accountability for paying the equated monthly instalments is shared equally. This helps you in reducing your debt burden and enhance savings.

Special rate of Interest:

You can avail the benefit of a lower rate of interest if the co-applicant is a woman. Recently, the rate of interest offered by banks and financial institution on a joint home loan with a woman as your co-applicant can be profitable.

Tax Benefits:

Home loan is also considered as the best tax saving option by numerous home-buyers. The tax benefit is a major respite for all the applicants of a joint home loan. Each borrower is eligible to claim the deduction against principle amount repaid and against interest repaid.

There are a plethora of home loan benefits awaiting you. Go ahead and explore!

Disclaimer: Terms & Conditions Apply.
Credit at sole discretion of Kotak Mahindra Bank Ltd and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.