india employmentnews

Joint Home Loan Tips: How much is it right to take a Joint Home Loan and how is it helpful in saving tax?

social media

Everyone dreams of building their own house. For this, he works hard, but sometimes due to lack of money, his dream seems incomplete. To fulfill this dream, a home loan proves to be very beneficial.

If you are also thinking of taking a loan to buy or construct a house, then try to take a Joint Home Loan. You can take this loan with your wife or any family member.

You can easily get this loan at a cheap rate. The biggest feature of this loan is that you get more tax benefits in comparison to a home loan. If you take a home loan with your wife, you can save tax up to Rs 7 lakh.

Tax provision in joint home loan

In a joint home loan, you can avail of tax benefits under Section 80C and Section 24(b) of the Income Tax Act. Under Section 80C, both loan holders can avail of tax benefits of up to Rs 1.5 lakh.

Apart from this, under Section 24(B) both borrowers can claim a deduction on home loan interest up to Rs 2 lakh.

In this way, a maximum deduction of up to Rs 3.50 lakh can be made on home loan interest. This means that both borrowers can avail of tax benefits up to Rs 3.50 lakh + Rs 3.50 lakh i.e. total of Rs 7 lakh.

These are the conditions for getting tax benefits

A rebate of Rs 7 lakh on a home loan will be available only if both borrowers are co-owners of the property. Both of them must have their names registered as co-borrowers in the loan documents.

Understand it this way, if you are the owner in the property papers, but your name is not the co-borrower in the home loan papers, then you will not get the tax benefit.

Let us tell you that co-borrower means the one who takes the responsibility of loan repayment. Apart from this, the EMI of the loan is being paid by both.

Benefits of joint home loan

     Many times, there is difficulty in getting a loan if the credit score is not correct or due to low income and some other debt. In such a situation, if two people take a loan together then it becomes easier to get the loan. Let us tell you that the other person's ability to pay should be good.

     In a single loan, the loan is available based on the income of only one person, whereas in a joint home loan, the loan is available based on total income. In such a situation, the possibility of increasing the loan limit is also high.

     If a joint home loan is taken with a woman, the interest rate may be lower. Many banks or financial institutions fix different interest rates for female co-applicants. However, this benefit is available only when the woman is the sole or joint owner of the property.

Follow our Whatsapp Channel for latest update