People are rapidly applying and benefiting from Home loans. There has been a tremendous rise in home loan applications in recent years. Many borrowers prefer applying for a joint loan as they can avail various benefits, such as a higher loan amount, income tax rebates, better credit scores, etc. When applying for a joint loan, the co borrower also shares the ownership of the home loan in an asset with you or group or individual. There are certain eligibility rules and prerequisites which have to be met for the loan to be sanctioned.
Additional reading: Save with a joint home loan
As the home loan co-borrower and co-applicant are considered the same as they share equal responsibility as far as the repayment is concerned, under special situations, the lender might consider transferring the loan completely to a co-borrower. But in case of any conflicts between them, the co-borrower can be in a disadvantage.
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To avoid such disputes later, it is important for the home loan applicants to have separate legal liability agreement that has all the terms and conditions mentioned. Banks promote the co-borrowing as it reduces the risk of defaulting in repayment of the loan.