5 Commons Myths of Joint Housing Loan
A joint home loan is a loan in which multiple individuals can apply for a higher loan amount. Taking a loan jointly also helps them to increase their loan eligibility and also share the financial burden of paying the EMIs equally. But you also might have noticed that there are certain myths associated with taking a joint housing loan which may bring confusion in the minds of the borrowers. Some of the common myths are.
1) The first myth that there is no role of the co-applicant when you think of closing your ongoing home loan. To close your home loan, you need a NOC from your co-applicant and if he is not willing to give that because of some personal issues between you and him. Your home loan will not be closed.
2) Second myth is that most of the banks and housing finance companies tell the borrowers that there is a significant role of the co-applicants signature on the loan contract. But this is not true at all. Their signature is also completely important, and they are also equally liable in repaying the loan amount along with other applicants.
3) The bank insists that adding a non-working applicant or your spouse to your loan will increase your loan amount. But this is not the case. If you are adding someone to your loan and are not earning a decent amount and incapable of paying the loan EMIs, your bank might not increase the loan amount if you make a request.
4) There is also a myth that co-owner cannot avail IT deductions if they take a joint home loan. They are also eligible for IT deductions under section 24 and 80C of the Income Tax Act.
5) It is also a myth that home loan protection plan can be issued only in the name of the primary borrower. But this is not true. If in case the primary borrower dies, the home loan protection plan can be transferred from the primary borrower to another borrower.
1) The first myth that there is no role of the co-applicant when you think of closing your ongoing home loan. To close your home loan, you need a NOC from your co-applicant and if he is not willing to give that because of some personal issues between you and him. Your home loan will not be closed.
2) Second myth is that most of the banks and housing finance companies tell the borrowers that there is a significant role of the co-applicants signature on the loan contract. But this is not true at all. Their signature is also completely important, and they are also equally liable in repaying the loan amount along with other applicants.
3) The bank insists that adding a non-working applicant or your spouse to your loan will increase your loan amount. But this is not the case. If you are adding someone to your loan and are not earning a decent amount and incapable of paying the loan EMIs, your bank might not increase the loan amount if you make a request.
4) There is also a myth that co-owner cannot avail IT deductions if they take a joint home loan. They are also eligible for IT deductions under section 24 and 80C of the Income Tax Act.
5) It is also a myth that home loan protection plan can be issued only in the name of the primary borrower. But this is not true. If in case the primary borrower dies, the home loan protection plan can be transferred from the primary borrower to another borrower.
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