Eligibility3 min read · Updated 17 October 2026
Joint home loan: benefits, risks and how it affects eligibility and tax
What changes when two people take a home loan together: a bigger eligible loan, shared responsibility for repayment, effects on both credit reports and the tax rules.
Why take one
Two incomes raise the EMI the lender can accept, so the eligible loan is larger. Some co-borrowers also lower the rate if the combined profile is stronger, though this varies by lender. A joint loan is also useful when a spouse or parent will co-own the property.
The risks
- Each co-borrower is liable for the full EMI if the other cannot pay.
- Late payments hurt both credit reports.
- It can complicate selling or refinancing, because both must agree.
- Relationship changes can make it hard to unwind.
Tax on a joint loan
Under the old regime, published summaries say each co-owner can claim up to ₹2 lakh of interest and ₹1.5 lakh of principal (within the 80C limit) in line with their ownership share, and only if they are on the loan and the property and pay the EMI. The new regime gives no deduction for a home you live in. See home loan tax benefits and check with a tax adviser.
Set it up properly
- Agree the ownership share and who pays what in writing.
- Keep EMI payments from each person's own account, in proportion to their share.
- Check both credit reports before you apply. See how to fix errors.
- Ask your lender what happens to the loan if one borrower dies. See what happens to the loan.
Common questions
Does a joint home loan increase eligibility?
Usually yes, because lenders can add both incomes. Both must also meet the lender's credit checks.
Can both co-borrowers claim tax benefits?
Under the old regime, each co-owner who pays can claim in line with their share. The new regime gives no deduction for a home you live in.
Who is responsible if one co-borrower stops paying?
Both are responsible for the whole loan, so the lender can ask either one.