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1 November 2017
Know Home Loan and Eligibility
Joint Home Loan: 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 for Joint Home Loan:
- 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 on Joint Home Loan:
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 of Joint Home Loan:
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.
Must Read Types of home loan
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Types of Home loans available in India
There are a variety types of home loans in India which come with different features as discussed below:
- Land Purchase Loan
- Home Purchase Loan
- Home Construction Loan
- Home Improvement Loan
- Home Extension Loan
- Home Conversion Loan
- Bridged Loan
- Stamp Duty Loan
- Balance Transfer Loan
1. Land Purchase Loan:
This loan is sanctioned by banking & financial institutions to support the borrower in purchasing a land for constructing his dream home. Generally this loan carries a period of up to 15 years for repayment. This can be beneficial to those who have regular flow of income and who think that the cost of the loan less than what the land is going to fetch in the future.
2. Home Purchase Loan:
Home purchase loans give you the fiancé required for buying a new or existing home. Almost 80-85% of the total cost of the home can be obtained as loan. This is one of the mostly availed home loans in India. As salaried employees, people are increasingly trying to buy a new flat or house in well-developed area rather constructing a house on their own. This attitude drives the demand for these kind of loans.
3. Home Construction Loan:
These loans are sanctioned for the purpose of constructing a house. This loan would be much complex in terms of procedural aspects when compared to the above two loans. If the land has been purchased by you before one year to the commencement of construction of the house then the cost of land would be considered to determine the cost of house, otherwise cost of land is excluded from the cost of the home. The documents required for this loan are slightly different from the above said loans.
4. Home Improvement Loan:
As the name suggests these loans are sanctioned by the banks and housing financial institution for taking up an improvement activity in the house, whether it is renovation, repairs, any electrical work, construction of small utilities which brings an improvement in the home. External works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting are also included by the term improvement.
5. Home Extension:
These loans are meant for giving financial assistance to take up an expansion of your home by way of building an additional room, balcony, expanding the living area etc., Generally this also requires permission form the municipality.
6. Home Conversion loan:
These are the loans sanctioned by banks and financial institution to those who have already obtained home loan from them to buy a home and now want to shift to another home which may need some further financial assistance. Through conversion existing loan is shifted to the new home.
7. Bridged Loan:
As the name suggests these are the loans which are intended to help those who having a home want to buy or construct a new home buy selling off the existing home. If you want to sell your existing home but could not find a potential buyer but you wish to shift to a new home as early as possible, in such cases these loans are granted.
8. Stamp Duty Loan:
Stamp duty loans are designed to sanction the finance needed to pay off the stamp duty attached with the purchase of home or land. These are not as popular as the other loans.
9. Balance Transfer Loan:
These are designed to pay off the existing loan and to switch over to another loan. For example if you have already had a home loan from a bank which charges 10% per annum as interest, after some time you came across a bank which gives you the loan @ 9% then using these types of loans you can pay off the existing loans.
If you are exhausted to fill the form, then request call back from our representative.
Making Financial Solution
0452 497 92 32
94421 07545/ 97 5151 10 10
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