Estimates your combined home loan eligibility when applying with a co-applicant, based on both incomes and existing obligations.
Banks combine both applicants' net incomes to determine total FOIR capacity, then subtract both applicants' existing EMI obligations to find the available EMI capacity for the new loan — which is then converted into a maximum loan amount at the proposed rate and tenure. This typically results in meaningfully higher eligibility than either applicant could get alone, though a co-applicant with substantial existing debt reduces how much benefit the combination actually provides.
Generally yes, since the bank considers combined income and combined FOIR capacity — but the co-applicant's existing debts also count against the combined eligibility, so a co-applicant with significant existing EMIs may add less benefit than expected.
Most banks require co-applicants to also be co-owners of the property, though this can vary by lender and relationship (like a parent-child co-applicant arrangement) — check your specific bank's policy.
Yes — each co-applicant who is also a co-owner and contributes to EMI payments can separately claim deductions under Section 24 (interest) and Section 80C (principal) up to the individual limits, potentially doubling the total tax benefit available to the household, under the old tax regime.