Joint home loan is taken by two or more members of the family, with each applying member sharing equal responsibilities for repayment of the loan. A home loan taken jointly can help a family increase their savings without putting a strain on their financial position. It may be beneficial to split the home loan between both the individuals. According to ICICI Bank, only immediate family members, such as spouse, parents, children and siblings, are allowed to apply for a home loan jointly.
There are some conditions for taking a joint loan
Apart from having immediate family members in joint home loan, every applicant must have an independent source of income in the form of salary or business. Most importantly, both the applicants should be co-owners of the property for which the loan is being demanded from the bank. Banks also consider the retirement age of the older applicant while calculating the joint home loan.
Keep these things in mind while taking joint home loan
Are all the documents present or not?
Whenever you are going to apply for a joint home loan, first ensure that all the documents of both the co-applicants like KYC, income certificate, etc. are in order with the property documents. If this does not happen, you may get worried.
Decide the home loan amount wisely
When you are applying for a loan, your understanding about the home loan amount should be clear. You can visit the official website of any reputed bank, and use the free online home loan calculator available there to calculate the required amount. With this you will understand the idea of calculating EMI and home budget. Experts believe that if you take home loan in as little amount as possible, the interest burden will be less.
CIBIL score of both the applicants
Whenever you apply for a joint home loan, banks will check your CIBIL scores to determine the creditworthiness of both of you. That means if an applicant has low credit, it can affect the entire loan application. In such a situation, before applying, definitely correct your CIBIL score. That is, if you are jointly applying for a home loan with your spouse, you should first ensure that both of you have a good credit score.
Responsibility of both applicants in repayment of loan
According to ICICI Bank, timely repayment of home loan is the collective and individual responsibility of all co-applicants. Repayment can be made through a single integrated EMI payment through a joint bank account. Due to joint income, joint borrowers can usually avail a higher loan amount than individual applicants. However, it is important to borrow responsibly within your repayment capacity to avoid financial stress.
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