How Does Applying For A Home Loan With Co-Applicants Help Reduce The Burden?

Applying for a home loan is a significant financial commitment. It requires a proper evaluation of your financial credentials. Applying for loans with co-applicants reduces the burden of this complex process.

Co-applicants are co-borrowers who apply for the home loan with the primary borrower and share the responsibilities of paying the monthly EMIs and bearing the interest cost of the loan.

In this article you will learn how to apply for home loan with co-applicants can improve loan approval chances and reduce the burden in the long run.

Who Can Be a Co-Applicant in Home Loans?

Applying for a home loan along with a co-applicant is definitely worth the effort. It gives you better chances of meeting the eligibility criteria, a lower rate of interest, a larger loan amount, higher flexibility, and shared repayment capabilities.

Also Read: An Easy-to-Use Calculator To Know Your Home Loan EMI

Note that co-applicants can only be your family members or spouse, but not friends, minors, or relatives.

Here is a list of members that can be co-applicants in home loans:

  • Spouses are the most preferred option in this regard, as both get to enjoy several benefits and as a couple. It also helps them save a huge amount in the long run.
  • Unmarried daughter
  • Parents
  • Father and son
  • Brothers and sisters

Conditions of Applying for a Home Loan with a Co-Applicant

Given below are a few conditions and features of joint home loans that you need to check out:

  • The primary borrower and co-applicant can mutually decide about paying the monthly home loan emi
  • In case of the demise or bankruptcy of the primary borrower, the co-applicant is responsible for paying the home loan
  • Irrespective of any kind of insurance that the primary borrower is eligible for, the co-applicant is liable to pay off the EMIs of the home loan

Benefits of Applying for Joint Loans

Here are some of the key benefits of applying for a home loan for a self-occupied property with co-applicants:

Better Chances of Approvals

When you apply for joint home loans, the credit rating, employment status, age, and income are considered for both applicants. This increases your chances of getting instant approval on joint home loans.

Low Rate of Interest

Considering the financial stability and credit rating two people display, the chances are higher of attaining a lower home loan interest rate. Even if one of you is financially sound, you increase your chances of getting the best deal on home loans.

Additional Tax Benefits

The tax exemptions that a primary applicant enjoys are based on the following:

  • Section 80C: Each borrower can claim Rs. 1.50 lakh per year, which means Rs. 3 lakh for both.
  • Section 24D: Each borrower can claim Rs. 2 lakh per year, which means Rs. 4 lakh for both.
  • Other exemptions that they can enjoy are under section 80EEA of the Income Tax Act. The same is applied for the co-applicant, which means the dual benefit of income tax savings on the same home loan.

Credit Score Boost

Applying for joint home loans increases your chances of paying for EMIs on time, and sharing responsibility cohesively, which eventually leads to a higher credit rating. Repayment of loans and timely payment of EMIs, impact your credit rating and improve the creditworthiness of both parties.

Also Read: What Are The Documents Required For A Mortgage Loan In India?

Larger Loan Amount and Higher Flexibility

Joint loans can give you the advantage of higher home loan amounts and flexible home loan tenures. The eligibility criteria are considered for both borrowers, and the chances of gaining better loan offers are high.

Shared Repayment Capabilities

One of the key advantages of joint home loans is that you have shared repayment capacities. This means that in case of financial emergencies, sudden death, or any other contingency, there is a backup available to pay the EMIs towards the home loan, and there are fewer chances of missed payments.


Involving a co applicant in a home loan is highly recommended because of the affordability, ease of application, quick approvals, tax savings, and shared responsibility. Some of the best financial institutions in the home loan market offer the most competitive interties rates on joint home loans. Ensure you compare different loans to select the one of your home loans that suits your repayment capabilities in the long run.

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