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Advantages Of A Co – Applicant In A Home Loan
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A co-applicant can offer a significant leverage to a person seeking housing finance in India. Agreeably, a co-applicant in a home loan adds the issues like legal disputes and shred credit history. But, the advantages considerably outweigh the limitations. So, here are some great benefits of availing a housing loan with a co-applicant.
Higher home loan eligibility:
A housing finance company considers several aspects of the applicant while offering a home loan offer. In fact, most borrowers will tell you that it is very difficult to qualify for home loans. However, adding a co-applicant can be a vital advantage.
• You will have a higher income at your disposal. Thus, you can meet the home loan eligibility criteria easily. Or, you can repay the housing loan in a shorter tenure or avail better interest rates. Some people use these collective funds to consider a bigger property for their dream home too. This is the best way to get optimal value of a joint property purchase.
• Your house loan application becomes more attractive with your co-applicant's better repayment ability. A superior credit score or a job in government or public organization can improve the value of your proposal. Housing finance companies in India prefer to lend funds to couples, siblings, and parent-child duos.
Shared load of EMI:
When there are more people involved in a housing finance, there is a stronger financial support system. You do not need to worry about paying house loan EMI every month. Your co-applicant can make the payments too. So, you can handle any financial changes or medical challenges in your family much better. You will have the support of your co-applicant in a housing finance.
Shared income tax benefit:
However, housing finance in India is beneficial for co-applicants too. A home loan borrower can avail an income tax exemption of Rs. 2 lakhs on interest and Rs. 1 lakh on principal amount of self-occupied property. So, for example, if your annual home loan interest is more than Rs. 5 lakhs, then both co-applicants can enjoy an income tax rebate of Rs. 2 lakh. So, in right circumstances, both parties can get optimum income tax exemption.
You will need to acquire requisite documents for a co-applicant as well. But, home loan process is much easier when you have a supporting and dependable co-applicant. So, you can turn your dream home into a reality much more easily with a right partner by your side.
Author Bio :
The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the home loan facility. She writes about a variety of topics covering the home loan documents, rates & the uses of Home loan eligibility that help to make the best decision.
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