Rebate can be available at interest rate
If women are co-applicants, many banks offer them up to 0.05% cheaper interest rate. This small difference becomes a big savings in a long time. This benefit is available only when the woman has the main role.
Benefits of double rebate in tax
On taking joint home loan, both partners can get tax exemption under 80C and 24B sections. This means that both can get tax deduction up to ₹ 3.5 lakh annually. However, both should have income.
Low money can be found
Eligibility increases by adding income of both. A loan of more money can be easily available. Especially in metro cities, this factor becomes very important.
Reporting burden is divided
In joint loans, the two together fill EMI, which does not put much pressure on any one. This improves financial planning and also reduces the risk of loan default.
Woman exempted on making co-owners in property
If the woman is also made co-owner in the property, then registration fee is exempted in many states. For example, the rate for women in Delhi, Uttar Pradesh and Rajasthan is low.
Loan approval is early
When the income of two people is made the basis, banks feel less payment risk. In such a situation, the loan approval process increases. Also, banks are also comfortable in giving loans.
Chance to improve credit score
Regular EMI fills improves the CIBIL score of both. This proves beneficial for any other loan or credit facility in the future. Especially if the woman’s credit history has not been strong.