Joint Home Loan – Eligibility, Documents, Application Procedure
A joint home loan is a loan which is taken by more than one person. A joint home loan allows you to get a higher loan as the income of co-borrowers is along way considered. A maximum 6 Applicants joints in one home loan application. The parameters and criteria to determine the eligibility and quantum of a home loan differ from lender to lender. However, the factors affecting joint home loans in India need to be understood and kept in mind before making any applications. Let us have a look at the various parameters such as, documentation, Eligibility, and applications procedure affecting your joint home loan in India are as follows:
Compare Joint Home Loan Interest Rates 2024
| SBI Home Loan | 8.70 – 9.40% |
| HDFC Ltd | 8.65 – 9.85% |
| ICICI Bank | 8.75 – 9.80% |
| LIC Housing Finance | 8.65 – 10.25% |
| PNB Housing | 8.75 – 11.70% |
| Kotak Bank | 8.49 – 9.10% |
| Bank of Baroda | 8.60 – 10.30% |
| Canara Bank | 8.60 – 10.80% |
| Aadhar Home loan | N.A |
Joint Home Loan Documents List
The documents needed for joint home loans are the same as any other home loan. The only difference is that here documents are needed from both applicant and co-applicant. A List of the documents required for the sanction of a general home loan are:
For Salaried Individual:
- KYC Documents such as Photo ID Proof and Residential Proof.
- Salary slip for the last 3 months / Salary Certificate (If variable components like Over Time and Incentives are reflected then salary slips for the past 6 months are required).
- Latest Form – 16 if salary above INR. 10000/- per month
- Copy of all bank pass books / bank statements for the past 6 months including front page
- Company profile if it is a lesser known organization.
For Self Employed:
- KYC Documents such as Photo ID Proof and Residential Proof.
- Copy of last 3 years Income Tax Returns of the applicant along with computation of income duly attested by a Chartered Accountant
- Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant
- Brief Business Profile on the Letter Head of the firm by the applicant
- Bank Statement for the last 1 year for the Savings A/c & Current A/c
- Copy of either Shop & Establishment License / VAT Registration or any other mandatory license / registration
- Copy of the Partnership Deed (if Applicable)
- Copy of Tax Deduction certificate / Form – 16A (if applicable)
- Details of Contract (if applicable)
- Copy of Advance Tax paid / self assessment tax paid Challan
- Copy Educational Qualification Certificate
- Copy Professional Practice Certificate
- Salary Certificate (in case of doctors having salaried income).
* Note: Original documents are required for verification purpose only.
Eligibility Criteria for Joint Home Loan
The home loan eligibility amount readily increases, with the optimization of a joint loan. The reason being, the enhancement of your repayment capacity with now two people repaying the loan. However the size of the increase depends on the income of co-applicant.
Although, the parameters affecting your loan eligibility, differs with the bank chosen, however certain generalized factors are mentioned as follows:
- You’re Salary/ITR.
- Property Check.
- You’re Profile, Academic & Professional Background.
- Total work experience.
- Your credit/default profile.
- Family Credit History.
Tax Benefits:
Joint home loan tax benefits are an extension to the tax exemptions provided by home loans. As we all know, we can claim tax benefit of up to Rs. 1 lakh of the principal amount of home loan under section 80C and up to Rs. 1.5 lakh under section 24 of income tax act. In the case of joint home loans, applicant as well as co-applicant can enjoy tax benefit for the contributions towards the loan. The amount of tax benefit that can be availed here would be according to the proportion of contribution, subject to the limits specified above.
Conclusion:
Concluding the above, joint home loans are definitely beneficial as compared to normal home loans. In case you are looking for a home loan and you can speak to your blood relatives to get a joint home loan. However, be sure that the EMIs are paid as per schedule. If one of you fail to contribute towards the EMI payment, the other will be liable towards payment. In case of delay or default in EMIs, legal action will be taken against the borrower as well as co-borrower.
