Every one in the world dreams of having their own house.

To make it happen people

often plan to take a home loan. But there are many types of loans one can apply in
different banks and financial institutions. In home loans joint home loans are much
popular than the other. What makes them so attractive is their ability to distribute
the debt among all the applicants and the maximum sanction limit associated with
this. Apart from these deduction under income tax act for the loan repayments and
interest on loan payments will be available for all the members of the loan.
Things to know:
1. Joint Home Loan:
A joint Home loan is a loan sanctioned to more than one person jointly.
2. Co-borrower:
Among all the applicants one is called as co borrower to another. Since they
are taking the loans jointly the burden of repayment will be shared among
themselves. A joint home loan can be taken by up to 6 members. Generally
people used to take the loan along with their siblings, spouse or parents etc.,
Banks allow the joint loans to the siblings if they are the co - owners of the
property.
3. Eligibility:
Minimum two persons should be there
There is no compulsion that the co-borrower should be a co-owner of
the house but it is recommendatory to have co-owner as co-borrower
to avoid the chances of not getting the loans at the very first attempt.
A married couple always has a chance of getting the joint loans without
any problems from the side of lender.
Lending institution asks for the KYC details and proof of identity and
proof of address along with the proof of co-ownership where ever
necessary.
4. Tax Benefits:
Section 80C of the income tax act 1961 allows an assessee to avail the
benefit of deduction towards the repayment of principal amount. And one can
avail the deduction towards interest on loan paid under section 24 of the act.
In case of joint home loan all the co-borrowers of the loan can avail the
deduction towards the repayment of principal amount along with interest on
loan. This tax benefits will be proportionate to their share in the home loan.
Currently Rs 1,50,000 can be availed as maximum tax benefit for repayment
of principal u/s 80C and Rs 2,00,000 can be availed for interest payment.
To avail this tax benefits the co-borrowers should be the co-owners of the
property. Otherwise it is not possible to avail the deductions.
5. Repayment:
The liability of the co-borrowers is joint as well as several. In case of any
disputes or divorce between the husband and wife, the other who is ready to

enjoy the benefits of loan will be liable to pay off the entire loan. So it is
better to have an agreement stating the share of each co-borrower.
6. Planning:
Since all the co-owners are allowed to have the tax benefit it is advisable to
split their share of the loan accordingly so that person having maximum tax
slab will be allocated majority amount of the loan which makes it possible to
avail optimum tax benefit.

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