Published Jun 25, 2025 2 Min Read

How Couples Can Save Up to Rs. 7,00,000 in Taxes Every Year with a Joint Home Loan

Owning a home is a dream for many couples, but the financial commitment involved can often seem overwhelming. What if you could turn this investment into a significant tax-saving opportunity? With a joint home loan, couples can save up to Rs. 7,00,000 in taxes annually, making homeownership not only more affordable but also financially rewarding.

This article explores how joint home loans work, the tax benefits they offer, and actionable strategies to make the most of them, with a focus on Bajaj Finserv Home Loan.

What is a joint home loan?

A joint home loan is a home loan taken by two or more individuals, typically co-applicants such as spouses, siblings, or parents. It allows borrowers to share the financial responsibility of repayment while also increasing their loan eligibility.

For couples, joint home loans are particularly beneficial as they enable both partners to combine their incomes to qualify for a higher loan amount. Additionally, the repayment burden is shared, making it easier to manage monthly EMIs.

Bajaj Finserv Home Loan offers flexible repayment tenure of up to 32 years, competitive interest rates starting at 7.49%* p.a, and loan amounts as high as Rs. 15 crore. With minimal documentation and easy online management through the ‘My Account’ portal, Bajaj Finserv ensures a smooth borrowing experience for couples looking to own their dream home.

Joint home loan benefits

One of the most compelling reasons to opt for a joint home loan is the tax benefits it offers under Section 24(b) and Section 80C of the Income Tax Act.

Tax benefits explained

  1. Section 24(b): Deduction on home loan interest
    Each borrower can claim a deduction of up to Rs. 2 lakh annually on the interest paid for a self-occupied property. For a jointly owned property with a joint loan, both co-applicants can claim this benefit individually, provided they contribute to the loan repayment.
  2. Section 80C: Deduction on principal repayment
    Under Section 80C, each borrower can claim a deduction of up to Rs. 1.5 lakh annually on the principal repayment.

How couples can save up to Rs. 7,00,000 annually

Let us break it down with an example:

  • Suppose a couple takes a joint home loan and pays Rs. 4 lakh in interest and Rs. 3 lakh in principal repayment annually.
  • Each partner can claim Rs. 2 lakh under Section 24(b) and Rs. 1.5 lakh under Section 80C.
  • Combined, their total tax savings amount to Rs. 7,00,000 (Rs. 3,50,000 each).

Pro-tip: Apply for a joint home loan with Bajaj Finserv to maximise your tax savings and enjoy additional benefits like zero part-prepayment charges for floating-rate loans.

Check your eligibility for competitive home loan offers that align with your property investment goals. You may already be eligible - discover your options by entering your mobile number and OTP for instant assessment.

Things to note on joint home loans

While joint home loans offer significant benefits, there are important aspects to consider:

  1. Eligibility criteria
    Co-applicants must meet basic eligibility requirements such as age, income proof, and Indian citizenship. Bajaj Finserv requires a minimum CIBIL Score of 725 to ensure loan approval.
  2. Shared financial responsibility
    Both co-applicants are equally liable for repayment. If one defaults, the other must bear the entire EMI burden.
  3. Product features
    Bajaj Finserv Home Loan stands out with its minimal documentation process, flexible tenure, and easy online management. Borrowers can also benefit from customised loan offers based on their financial profile.

Key strategies to consider to manage a joint home loan

Managing a joint home loan effectively requires careful planning and coordination. Here are some strategies to help couples optimise their loan experience:

Open communication and financial planning

Discuss your financial goals and repayment plans with your co-applicant. Budget for monthly EMIs and align repayment schedules to avoid financial stress.

Splitting loan repayments

Divide EMI payments equitably based on your incomes. This ensures fair contribution and helps both partners claim tax benefits proportionately.

Emergency fund and contingency planning

Maintain an emergency fund to cover unforeseen EMI payments or financial setbacks. This safeguards your creditworthiness and ensures timely repayments.

Managing credit scores

Both co-applicants should aim to maintain strong individual credit scores. Bajaj Finserv’s transparent charges and clear loan terms make it easier to manage your credit profile.

Reviewing loan terms regularly

Periodically review your loan terms to explore better interest rates or adjust tenure. Bajaj Finserv offers flexible tenure options of up to 32 years for easier repayment.

Managing documentation

With Bajaj Finserv, minimal documentation is required, simplifying the loan process. Keep all loan-related documents organised for seamless management.

Insurance coverage

Consider loan protection insurance to safeguard your repayment obligations against unforeseen circumstances like job loss or medical emergencies.

Prepayment and foreclosure options

Take advantage of Bajaj Finserv’s zero prepayment charges for floating-rate loans. Prepaying or foreclosing your loan can reduce your interest burden significantly.

Conclusion

Joint home loans are a smart financial strategy for couples looking to buy a home while saving substantially on taxes. With benefits under Sections 24(b) and 80C, shared repayment responsibilities, and enhanced loan eligibility, they empower couples to achieve their homeownership dreams efficiently.

Bajaj Finserv Home Loan offers attractive features, including competitive interest rates starting at 7.49%* p.a, repayment tenure of up to 32 years, and loan amounts as high as Rs. 15 crore. Apply online today and get instant approval within 24 hours.

Check your loan eligibility whilst planning your tax-efficient financial strategy. You may already qualify for competitive rates.

Frequently asked questions

What are the eligibility criteria for a joint home loan?

Co-applicants must be Indian citizens, aged between 23 and 70 years, with stable income and a minimum CIBIL Score of 725. Proper documentation, including income proof, identity proof, and property details, is required.

What happens if one partner defaults on the joint home loan?

If one co-applicant defaults, the other is legally obligated to repay the entire loan amount. This underlines the importance of contingency planning and maintaining an emergency fund

Can we change the EMI amount after availing a joint home loan?

Yes, EMI restructuring is possible by adjusting the loan tenure. Bajaj Finserv allows flexible tenure options to help borrowers manage repayment comfortably.

Is it possible to transfer a joint home loan to a single applicant?

Yes, a joint home loan can be transferred to a single applicant under specific conditions, such as mutual consent and the financial capability of the remaining borrower.

Can we add another co-applicant to an existing joint home loan?

Yes, adding a co-applicant is possible, but it requires approval from the lender and submission of necessary documentation.

Can we apply for a joint home loan if we are not married?

Yes, joint home loans can be availed by siblings, parents, or even friends. However, the property must be co-owned by the applicants.


 

How can I improve my chances of getting a joint home loan approved?

Maintain strong credit scores, submit accurate documentation, and ensure that all co-applicants have stable incomes. Bajaj Finserv offers customised loan solutions to suit your financial profile.

What should we do if we face difficulties in repaying the joint home loan?

Reach out to Bajaj Finserv for loan restructuring options. Additionally, consider adjusting your budget or exploring tenure modifications to ease repayment.


 

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