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What is a Joint Home Loan and How Can I Avail It?

Updated: Apr 05, 2022

A joint home loan is an advance that is taken to profit on in both monetarily and kindly. When a home loan is taken with a co-candidate, one can be qualified for higher loan sum and offer the monetary weight similarly. Importance of a co-candidate is that the loan is taken together for the sake of at least two individuals with one being an essential/primary candidate and other one being an optional/secondary candidate.

According to a survey from the prestigious Harvard University, more than 65% of people benefit in one of the other ways through the joint home credit. For this article we will understand the joint home loan protocols in India. Everyone understands that orchestrating the extra money is distressing, if not dealt with warily. Since the essential wellspring of asset for buying a home is the home loan, one will in general apply for a higher home credit. However, banks don't concede more credit than your month to month pay measures, independent of the price tag of the house. In such a case, a joint home loan application expands the possibilities of getting a higher home loan sum, and/or at better terms.

Minimum Criteria Table (MCT)

The below table depicts the minimum criteria to be included in line of a joint home loan. These protocols have been set in advance to make sure that the fund giver body is not making a loss in their business model.

1. Must be an Indian citizen
2. Must be over the age of 18 years
3. Minimum work experience of 2 years with a certified firm
4. Co-applicant cannot be less than 1 and more than 5. Co-applicant must be a close family member (spouse / child / sibling / parent)
5. Minimum per year income of the applicant must be INR 1,20,00 for salaried and INR 1,80,000 for self-employed individuals.
6. Cash salary applicants may not be accepted

Documents Criteria Table (DCT)

The below table depicts the minimum documents criteria to be included in line of a joint home loan. These protocols have been set in advance to make sure that the fund giver body is able to validate the individuals present in that deal. These documents may vary, depending on the applicant’s profile as well as the lender’s policies.

1. KYC (Know Your Customer) documents
2. Income proof documents – Income slips
3. Bank statements
4. Property related documents

Advantages of a Joint Home Loan

1. Tax Benefits: You can profit tax reduction on both head and interest repayment under segment 80C and 24b, individually. Debt is considered as an amazing route to benefit from the taxes. While principal reimbursed can be claimed up to Rs 1.5 lakh in a monetary year, interest reimbursement can be guaranteed up to Rs 2 lakh in a monetary year for self-involved property. On a joint home credit, co-borrowers can independently guarantee these expense allowances, if they are likewise the co-proprietors of the property. Recollect that being simply a co-borrower and not co-proprietor of the property would deny you of the related tax cuts, regardless of whether you have been contributing towards the EMI repayment. Being financially educated surely helps and borrowing money becomes “leverage” when used appropriately.

2. Get a Higher Amount: Do you require a higher credit total to buy your fantasy home? Then, at that point, a joint home credit may be ideally suited for you. That is on the grounds that when you apply for a joint loan, banks think about the pay and reliability of both the co-borrowers. Along these lines, you have a higher possibility of getting a higher loan amount, providing both applicants meet the required eligibility criteria. With a higher amount, the co-borrowers get a choice for either going for a better/costlier property or for getting a home loan at better terms.

3. Women co-borrower benefits: Having a woman as a primary borrower may allow the co-owners to avail extra benefits. The below table is an illustration, which describes how stamp duty differs among genders in various key locations.

State/City Stamp duty for men Stamp duty for women
Delhi 6% 4%
Haryana 6% 4%
Uttar Pradesh (UP) 7% Reimbursement
Rajasthan 5% 4%
Punjab 6% 4%
Maharashtra 6% 5%

Must Read : How To Claim Tax Benefits On Joint Home Loans

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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