Does a co-applicant help when getting a home loan?

A co-applicant for home loan is someone who applies for a loan with you. Usually it’s a family member, such as a spouse, or a father applying with an unmarried son or daughter. A co-applicant also can be a business partner if both parties will own the property bought with the loan. Having a co-applicant for home loan increases your chances of approval and of getting a low interest rate.

Improved Creditworthiness

Even though your credit score is just a number, lenders place a large emphasis on it because it predicts how likely you would be to default on the loan. If your own credit score is low, or if your co-applicant’s credit score is high, having a co-applicant for home loan makes your application stronger overall and increases your chances of approval.

co-applicant for home loan

Lower Interest Rate

Even if you’d be likely to be approved on your own merits, a co-applicant can help you get a lower interest rate on the mortgage. Lenders reserve the lowest interest rates for loans that pose the smallest risk of default. By adding another creditworthy borrower to your application, you lower the bank’s risk. The bank might reward you with a lower interest rate than you’d pay when you were the only one applying for the loan.

Higher Income

A co-applicant’s income is included when determining how much of a loan the bank thinks you can afford. Adding a co-applicant might mean that the person’s income is added to yours when the bank considers how much to lend you. For example, say the bank doesn’t want payments to exceed 25 percent of your monthly income. If you have a monthly income of Rs.40,000, your maximum monthly payment is Rs.10,000. But if your spouse brings home another Rs.40,000 per month and becomes a co-applicant, your maximum monthly payment goes up to Rs.20,000.

Legal Requirements

In some cases a co-applicant is required on loans, so applying without one means you’d automatically be denied. Typically, if you’re applying for a secured loan, any co-owner of the property must be a co-applicant. For example,  Similarly, if you and a business partner are buying a store, you both must apply together for a mortgage.

How to add a co-borrower when you refinance a home?

Refinancing is a way to create a new mortgage loan and lower your interest rate and house payment. When refinancing a mortgage, your lender reassesses your income and debt. Any change to your financial situation, such as a decrease in income, an increase in debt or a lower credit score, can affect your ability to refinance. If you fear that a lender will deny your refinancing application, you can add a co-borrower to the new mortgage. This can include anyone but typically would include a family member such as a spouse, parent or sibling.

Step 1

Ask your preferred co-borrower if she is willing to put her name on the refinance application. Make sure she understands that she is responsible for ensuring the loan payments are made on time and in full, or her credit score will suffer.

Adding a co-borrower to refinance _Loanyantra

Step 2

Check your credit report as well as your co-borrower’s report to see whether you qualify for a refinance.  You can also get your credit score from CIBIL. Know more –

Step 3

Contact your existing lender or a new lender to get an application to refinance the home loan. When you fill out the application you will be asked to include your information and the co-borrower’s information. This includes both names, telephone numbers and Social Security numbers. Be sure both of you sign the mortgage refinance application.

Step 4

Submit the application along with other information the lender requests. This typically includes copies of your tax returns, bank statements and recent paycheck stubs. Since you’re applying for a refinance with a co-borrower, the lender will take both incomes and employment records into consideration.

Step 5

Wait for the lender to make his decision. If he approves the loan, you and the co-borrower will need to attend the loan closing and sign the mortgage papers. If the lender approves the refinancing and adds the co-borrower to the home loan, both parties must attend the loan closing. You’re both equally responsible for the loan, and closing on the loan is dependent on both signatures on the mortgage agreement. The new mortgage replaces the old loan.

Home Loan Life Cycle. Know How Loanyantra Works For Your Home Loan

We believe in Organic Management, the complete and the structured. Every step is taken with attention to close your loan at the earliest.

Feel the difference as we take you to the tour, “How We Work”.

To make our and your work convenient, we place the customers in three phases.
1. Introductory Phase
2. Saving Phase / Servicing Phase
3. Achievement Phase.

Orgnaic Home Loans 1

Introductory Phase :

Enter your details and apply for a new home loan or a balance transfer. Get eligible for the bidding by the leading banks in the industry.

Know the status updates about the sanction of your loan. Utilize our Live Support and Chat with the Banker and our representative.

Quick disbursal of your loan with a minimum of 0.10% discount on the ROI, for an year.

Saving Phase :

Congrats, you are our priority customer now. All your details are in our database / into our algorithm.
Our work begins where everybody else’s end!!!

We track your ROI constantly and send you alerts about part payments and interest rates of your bank and other banks as well.

Get alerts under the following subject lines.

a)Get stuck to the lowest interest rates and save the maximum.
b)Don’t let your money sit unattended. Learn with us how to reduce the tenure of your loan with your hard-earned savings.
c)Be the first one to know about the change in repo rates and the banks spread.

Want to follow our alerts? Just click on the suggestion link. We take you along the process.

Get into this step and refer more of your friends to save more.

Achievement Phase :

You finally, reach this stage before your estimated tenure.
Following the procedure to close the home loan is also equally important.

Apply for the loan closure. Doorstep service assured.

Get updated with the process. We get all your documents back in your hand.

Relax in your home!! You are done with your home loan.

Orgnaic Home Loans

Our team works like a clock, to maintain your ROI at the lowest, every time. Loan Rate Shield guards as a screen and sends alerts and tips how you can close your loan before the estimated tenure.

Stay connected, all time, with us while we work on your loan life cycle.

Property Registration? Which state do you belong to?

Stamp and registration charges are charged by the state government on your property. Usually it is calculated on the cost of the property. This is penny-pinching for many of us, as loan is granted excluding this by the nationalised banks, though some NBFCs might opt. So, when you calculate your finances, put this expenditure too on the paper

.registration charges_loanyantra

It varies from state to state. However, registration of Property is compulsory in any case. Registration of the property is a full and final agreement signed between two parties. Once a property is registered, it means that the property buyer in whose favor the property is registered is the lawful owner of the premises and is fully responsible for it in all respects.

The registration of property is to be done in the Registrar’s Offices by the Sub-Registrar. One has to present the Sale Deed in the concerned Sub-Registrar Office where the land is situated and then have to pay prescribed fee of stamp and registration charges. Once the registration is complete, the purchaser has to apply to the local municipal authority to get the title of the property concerned transferred to his/her name. This is commonly referred to as mutation of the title of the property.

Here is the list with respect to the different states.

Stamp Duty and Registration Fee
Criteria Stamp Duty Registration Fees
Andhra Pradesh and Telangana Sale Deed 4% 0.50%
Andhra Pradesh and Telangana Government website
Conveyance Deed (gift, mortgage, lease etc.) 5% 0.50%
Maharashtra Within Municipal Corporation boundary 5% 1%
Money Control website
Within Municipal Council boundary 4% 1%
Within Gram Panchayat boundary 3% 1%
Odisha None 7% 2% Orissa Government website
Tamil Nadu None 7% 1% Tamil Nadu Government website
Karnataka None 5% 1% Karnataka Government website
Goa None 7% 1% Goa Government website
Gujarat None 3.50% 1.05% Gujarat Government website
Rajasthan General 5% 1%
Rajasthan Government website
Female 4% 1%
Disabled 4% 1%
Punjab None 6% 1% Punjab Government website
Sale Deed
Within Municipal boundary
Male 7%
From Rs 1 – Rs 50,000 It is Rs. 100. From Rs 50,001 – Rs 1,00,000 it is Rs. 500. From Rs 1,00,001 – Rs 5,00,000 it is Rs. 1,000. From Rs 5,00,001 – Rs 10,00,000 it is Rs. 5,000. From Rs 10,00,001- Rs 20,00,000 it is Rs. 10,000. From Rs 20,00,001- Rs 2500000 it is Rs. 12,500. Above Rs 25 Lacs it is Rs. 15,000.
Haryana Government website
Female 5%
Outside Municipal boundary
Male 5%
Female 3%
Conveyance Deed
Within Municipal boundary 7%
Outside Municipal boundary 5%
Uttar Pradesh None 12.50% 2% Uttar Pradesh Government website
Delhi Male 5% 1%
Delhi Government website
Female 3% 1%
Madhya Pradesh None 8% 1% Madhya Pradesh Government
Chattisgarh None 7.50% 1% Chattisgarh Government website
Jharkhand None 4% 3% Jharkhand Government website
West Bengal Within Municipal boundary 6% 1.10%
West Bengal Government website
Outside Municipal boundary 5% 1.10%
Manipur None 4% 3% Mizoram Government website
Sikkim None 4% 3% Sikkim Government website

Ask yourself – 5 Questions about Home Loan Insurance.

Q1. What is home loan insurance? Is home loan insurance and house insurance same?

Firstly, we should know that house insurance is totally different from home loan insurance. With regard to home loan insurance, you get the home loan insured whereas with house insurance, you get the house insured.

Q2. How does it work?

“A loan insurance plan covers the balance to be paid in case of the borrower’s death as per the loan schedule decided at the time of taking the policy,” says Rituraj Bhattacharya of Bajaj Allianz Life Insurance.

The insurance offered by the loan cover will progressively come down as the loan gets repaid. For instance, by the 10th year, if the loan cover would have been to be Rs 13.5 lakh. By the 14th year, it would have been reduced to about Rs 3.5 lakh.

Q3. How to pay the premium?

To calculate the premium, primarily, the interest rate is taken into account. A few companies also have a different rate for metropolitan and non-metro areas. The other factors considered are, the age and medical record of the policy holder, the loan amount and the repayment period. The larger the loan amount or the repayment period, the higher the premium.

The payment can be paid at once or annually. For example, if you have to pay a premium of Rs.50,000 and choose to pay annually,  the bank includes that premium into your loan amount and calculates the EMI. So be wise and diversify your funds.

home loan insurance _loanyantra

Q4. What are the tax benefits?

Only, if the premium has been paid by the borrower himself, he is eligible for tax deduction under Section 80C and Section 10(10D).

If it has been paid by the lender and is part of the loan that he will repay through EMIs, it will not be possible to claim deduction.

Infact, the tax benefit is very negligible. The tax limit is Rs. 1,50,000. So, when you choose to pay annually, the premium is spread across your tenure which is added in your EMI. Understand that you don’t lose much.

Q5. What are the other options?

Usually home loan insurance is compared with insurance term plans. The main advantage with term plans is they cover other financial needs along with the home loan.

NOTE :  Why should you opt for Home loan insurance?

The solution lies with you. But, the best advantage with home loan insurance is, incase of unexpected happening to the borrower, the insurers go to the bank directly to close the loan. The family need not go around the banks or insurance companies. So, for those whose family does not have much exposure about these financial matters, it is a must-go option. So, plan smart and choose the best fit.

Types of Home Loan

Mr. Trump want to know various kinds of home loans offered by financial institutions in India.

types of home loans in India


Home Purchase Loan

These are the basic home loans for the purchase of a new home. These loans are given for purchase of a new or already built flat/bungalow/row-house. Home purchase loan is most popular variety among home loan product offered by the Financial institutions, even government encourages Loan seekers by giving tax incentive.

Home Improvement Loan

These loans are given for implementing repair works and renovations in a home that has already been purchased by the customer. It may be requested for external works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc. Generally people consider option of personal loan to do this kind of works, home improvement loans are lesser than personal loan interest rate.

Home Construction Loan

These loans are available for the construction of a new home. The documents required by the banks or bank for granting customer a home construction loans are slightly different from the home purchase loans. Depending upon the fact that when customer bought the land, the lending party would or would not include the land cost as a component, to value the total cost of the property. Some banks don’t deal with this type of loan.

 Home Extension Loan

Home Extension Loans are given for expanding or extending an existing home. For example addition of an extra room, etc. For this kind of loan, customer needs to have requisite approvals from the relevant municipal corporation. However subject to technical valuation of the bank.

Land Purchase Loan

Land Purchase Loans are available for purchase of land for both home construction or investment purposes. Therefore, customer can be granted this loan even if customer is not planning to construct any building on it in the near future. However, customer has to complete construction within tenure of three years on the same land. only few banks in india offer this type of loan and sanctioned amount is based on title and location of the property.

Bridge Loan

Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home. This loans are short period in nature having a tenure of minimum 2 weeks to 24 months maximum.

Balance Transfer

Balance Transfer loans help customer to pay off an existing home loan and avail the option of a loan with a lower rate of interest. Customer can transfer the balance of the existing home loan to either the same banks or any another banks, people opt for these type of loan if they realize fact i.e. small change in interest will influence the burden of EMI’s to them. For more details check “Cost of switching home loans to new lenders?”

Stamp Duty Loan

These loans are sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

NRI Home Loan

This is a special home loan scheme for the Non-Resident Indians (NRI) who wish to build or buy a home or land property in India. They are offered attractive housing finance plans with suitable reimbursement options by many banks in the country.

Know-how, Before You Close Your Home Loan

One of the best days in life for any home loan payer is the day when you have to close your home loan. The customer can experience this day, much before the estimated time line, as loanyantra manages the loan and helps in the process of closing the home loan earlier.

The very usual reasons to close the home loanclosing the home loan

a) Either you pay off prematurely or,

b) Your loan might naturally reach the end of the tenure.

However may be the case, take note of these points before closing the home loan.

  1. No Due Certificate (NDC) – The bank will issue a loan closure letter or NDC stating that all dues have been repaid and there is no outstanding amount in your name. Check and re-check all your details.
  2. Original Documents – After you obtain NDC, take back all the original documents you had submitted at the time of approval or disbursal. The documents can be the original sale deed, prior title deed, power of attorney, builder-buyer agreement, property cost break-up, possession letter, payment receipts, cancelled cheques, tripartite agreement, encumbrance certificate, land and building tax receipts.
  3. Home Lien – Get the home lien removed, if any. You need to submit the bank’s NDC to the local registrar to get the lien removed.
  4.  Inform CIBIL – Request your bank to inform CIBIL about your successful loan closure. The bank will inform you once they have shared the details with CIBIL and you can check your credit score to confirm.

Note : Take back Post-Dated Cheques (PDCs) you may have, earlier, issued to the bank.

Even after successful loan closure, make sure you have all the details of the loan, including bank statements, NDC and prepayment records, in place, for future use.



Monitor Your Home Loan Without Any Hassle

From the childhood days when you used bits and pieces of bricks to construct a miniature house to the point when you received your first salary, purchasing an abode you can call your own has been in your mind for as long as you can remember. However, when you scour the market for that ideal home you are confronted with the necessity of conducting thorough backgrounds checks and finally settling on that perfect home loan. It doesn’t always have to be long drawn out and difficult if you are empowered to monitor your home loan not only before you make the commitment but even during the span of the loan repayment.

Forgetting the loopholes and paving the road to the home of your dreams was never as easy before!

Step 1: Are you even eligible for a home loan?

Whether you are eligible for a home loan or not depends on a variety of factors. Your home loan application might end up being impressive or get rejected at the beginning based on even the most trivial of details. Home loan eligibility tests help you see exactly where you stand on the home loan eligibility scale. You would be required to input your gross monthly salary, state the number of your existing EMIs truthfully and the name of your company. You might even be required to state your age, mobile number and email id for information regarding exciting home loan offers on certain websites. After you have expressed your desire to settle in at a particular location and specified the type of loan you would need, the system would evaluate the possibility of you availing a great home loan deal in the near future.

Step 2: Wisdom lies in comparison

Your home loan might pertain to either availing a brand new one, engaging in a resale, purchasing a plot of land and even balance transfer. Most people who are not tech savvy make the fatal mistake of getting lost in the piles of documents, which need to be filled up or have to be kept track of. They blindly believe in the word of their realtor or banker without even considering the idea that might be paying an exorbitant sum for their dream home. However, in the age of the internet, you can easily monitor your home loan transactions without any glitch whatsoever. Once you are afforded the real picture of the market prices, you would be equipped with all the knowledge to choose the home loan that would be the most optimum to your purposes.

Step 3: Monitor your home loan

The prospect of monitoring the home loan has emerged as nothing short of a lifesaver for all future home owners. Not only will you be assured of the regular analysis of the current market price but would also be updated with the recent market trends, rate of interests, new loan requests and even some additional services. Though there are not many websites out there who transparently monitor your home loan, the genuine ones can even help you close your 20-year loan in a matter of 11 years.

Choose carefully, and even you would be able to monitor your home loan without any

Keep Your Interest Rate In Check With Loan Rate Shield (LRS)

First things first. You might have been wondering exactly what is Loan Rate Shield or LRS. LRS is fast emerging to the greatest thing that ever happened to prospective homeowners who have no clue how to go about the loaning procedure. It is a service offered by for all its esteemed clients and you too might want to squeeze in to ensure your chance of a brilliant future.

In this article, we take you on a trip to what lies in the heart and soul of LRS and exactly how you can mould it for your own interest.

What is Loan Rate Shield (LRS)?

Loan Rate Shield (LRS) is one of a kind loan monitoring system that believes in thorough analysis before providing you with the requisite data. If you thought that the algorithm engine of LRS would only monitor your home loan until you reach the point of closure, you couldn’t be more wrong. Loan rate shield is dedicated to provide you with a holistic service and also sends you periodical alerts and recommendations about all the exciting home loan investment opportunities in the market so that you don’t miss out on anything. Loan rate shield stands true to its name and acts as your shield in the most acute of financial crises and helps you get out of the loan loophole by drastically cutting down on the high interest rates.

Loan Rate Shield- Your chance at a better future

Shielding your way to success- Investing in a home loan and signing on the dotted line is one of the most euphoric feelings in the world. However, all that happiness collapses in an instant when you find one of your friends has got a better home loan deal than you at a much lower interest rate. LRS shields you from the horror of it all by scouring the market for the deals that would be optimum to your purposes.

Monitoring your money- When you engage in a home loan with a lender know that they have financial advisors who are monitoring it all from behind the curtain. It is not always possible for a common man to avail the services of an advisor and that’s where LRS comes into the picture. It monitors your home loan with the eyes of a hawk and minutely takes track of your overall cash outflows so that you know exactly where you stand.

Alerting you at every step– There are lenders who would try to attract you with promises of reduced rate of interests but not all of them are genuine. LRS alerts you of all the best home loans in the market and even informs you if you have been paying more EMIs than the requisite amount in the years leading up to the final closure.

Extends a helping hand- Closing your home loan before the ultimate due date is a dream that all of us cherish. Loan rate shield helps you in making that dream a reality.

Provides you with effective recommendations- LRS would pin point the areas on which you need to focus in order to save up more on your EMIs and if you manage to follow the advice diligently, you can bid adieu to your mortgage once and for all.

Calculator : Where you Get a Clear Picture of What Awaits

Every prospective homeowner looking for a home loan is akin to a blind man trying to make sense of everything with the help of the instinct. However, since the kind of home loan deal you manage to strike with your lender reflects on the kind of future you will have, getting to know the whole picture is always a wise decision. With the calculators at, you are gifted with the knowledge of what you will find in the loan sector. You will be able to dodge all surprises and come out stronger.

Don’t let your future boil down to a lifetime of EMI payments with the right calculator for your needs.

Home Loan Eligibility Calculator- The Home Loan Eligibility Calculator helps you know whether you are eligible for a home loan in the first place. Contrary to the popular notion, your lender conducts a thorough background check before trusting you with the money. There’s nothing worse than applying for a home loan and ending up dejected and disappointed just because you didn’t qualify. Save yourself the shock at the outset by using this calculator. You just have to input the requisite information like your gross monthly salary, the name of your company, the location of the property who are seeking a home loan on and the type of loan you desire. You can rest assured that this calculator would keep the legal formalities to a minimum. Since knowledge is power, even if you don’t find yourself eligible, you can plan for a future when you will be.

Balance Transfer Calculator- With the Balance Transfer Calculator, you are given the guarantee that not only would you be able to pay less, but also pay off your loan fast. You would be required to enter your current home loan details like the principal outstanding amount, the interest rate, your existing EMI, the number of EMIs left to be paid and the name of your bank. Once you inform this calculator of your property location, you will be notified of your bank transfer details.

Part Payment Calculator- Whenever you apply for a loan, the subject of EMI payment always persists like a thorn. Not all lenders take the time out to explain the algorithm behind the total amount you would be required to pay and the number of instalments you can distribute so as to lessen the huge financial burden. This is where the Part Payment Calculator comes in. You have to enter the total loan amount, the rate of interest on it, the repayment EMI, the number of months and whether you want to make the payment all at once, on a monthly, quarterly, monthly or half yearly basis. You will be notified of the part payment you need to make to reach closure sooner than you had formerly expected.

Home Loan EMI Calculator- The Home Loan EMI Calculator is one of the most efficient of the bunch as you would find a pictorial representation of the breakup of your total home loan repayment amount. Just input your home loan amount along with the interest rate and loan tenure and this calculator would tell you the monthly EMI value, the interest payable and the total payment you’ll be making. If you’re still trying to grasp what you are in for, the pie chart is there to make the complicated maths a lot easier to understand.