Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > Pros & Cons of Getting a Joint Home Loan For Married Couples

Loan for Home

Pros & Cons of Getting a Joint Home Loan For Married Couples

Pros & Cons of Getting a Joint Home Loan For Married Couples

Purchasing your dream home is a huge financial investment. If you are funding the expenses with a loan, you can consider taking a joint home loan for couples to improve your repayment capacity.

Let us look at the pros and cons of joint loans.

Pros of joint housing loans

#1 Rebate on interest rates and easy repayment

Most lenders offer lowered interest rates for women co-borrowers. Besides, in a joint loan, you can easily share the repayment burden with your co-applicant. So, your EMI obligations weigh less on your individual incomes.

But that’s not all! With two people repaying the loan, you can pay higher EMIs and close the loan over a shorter tenure.

#2 Higher loan amount

Taking a joint loan also means fulfilling home loan eligibility terms for a bulkier loan amount. How? In a joint loan application, you and your spouse pool your incomes together, increasing your EMI affordability and making you eligible for an extended tenure and higher budget.

With a higher loan amount, you can buy a house aligning with your housing desires.

#3 Tax benefits

The best thing about a married couples joint home loan is that you receive tax benefits for both the principal amount and the interest paid. Why, yes! Thanks to Sections 24 and Section 80C of the Income Tax Act. And since two borrowers share the loan, you get double benefits and double savings.

But how much can you save? Section 80C enables you to claim a tax deduction of Rs. 1.5 lakhs in a financial year. Moreover, Section 24 allows you to claim an additional rebate of Rs. 2 lakhs on the interest paid.

So as a couple co-owning the property and co-borrowing the loan, you can claim Rs. 4 lakhs under Section 24 and Rs. 3 lakhs under section 80C. That’s a whopping total of Rs. 7 lakhs!

Additional Read: How to Claim Tax Benefits on Joint Home Loans?

Cons of joint housing loans

Now that you know the advantages of joint home loans, let us look at their disadvantages.

#1 Transfer of burden

If one of the co-borrowers loses their job or faces a financial emergency, the repayment burden automatically falls upon the other partner. This can put an intense financial strain which may lead to EMI defaults. Not repaying your EMIs on time will also hurt your credit score.

#2 Death of spouse

If unfortunately, one of the spouses passes away, the burden of clearing the housing loan again falls entirely on the surviving partner.

#3 Separation

If a couple decides to part ways in the future or a co-borrower opts out of repaying the loan, the responsibility to pay the loan rests with one applicant. Inability to repay can lead to legal repercussions for both borrowers.

To avoid this, you can sign an agreement mentioning each partner’s share in loan liability beforehand.

Additional Read: Do’s and Don’ts for Married Couples When Buying a New House

In summary

Joint housing loans are pretty attractive, considering the host of benefits they offer. Whether you are applying jointly or individually, get hassle-free housing finance with Tata Capital. Get extended loan tenures and the most competitive home loan interest rates, starting at 6.90%.

Evaluate your loan eligibility and apply today!

Apply For House Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.