Personal Loan

Co-applicant Feature in Personal Loan

Personal Loans have become very popular in recent times due to the ease of their availability. they do not even call for the need of collateral they need a good credit score, thereby making them the first choice when in need of immediate credit we can but have a credit score The documentation required with a personal loan is also minimal that entails the basic personal and income proof documents with photographs and PAN, Aadhar.

As personal loans are unsecured in nature then we need to take it very carefully, i.e. not backed by collateral and the lenders can base the decision of approval or rejection based on your credit score and income how much you have, with both the aspects assuming equal importance and you are aware that the need for credit could arise at any point in life without allowing you the luxury of saving or planning you can take a personal loan with good credit. How well can you manage such situations when you need a personal loan and are faced with a bad credit score or are in a low-income situation then may we not take a personal loan.


A co-applicant is like a person who assumes the responsibility of the personal loan with you like you can take your money or they can give EMI or money to HDFC Personal Loan. Co-application is a common feature when it comes to home loans or any other loan, with spouses being the most favored combination for co-application; this feature is now being extended to personal loans too by some banks and financial institutions or any other.

A co-applicant is equally responsible for the repayment of the loan as the primary applicant with a good credit score. Credit scores good and incomes of both the applicants are taken into account and form the basis of the decision. In case of a default and the credit scores of both the applicants take a hit and the lender is well within their limits to take action against both of them it depends. 

We can Co-applicant Or not?

Your spouse, parents, or your siblings can be a Co-applicant of your personal loan like same blood. In the case of home loans, only certain combinations like parent-son, brothers, unmarried daughter-father, and mother are allowed other than the usual loan application from a spouse; these are very important in the case of personal loan.

Other than that personal loan does not involve collateral or pledged entity or House, Gold, Vehicle, etc and other combinations may also be allowed for co-application. This would again depend on the rules and regulations and policies of your banker and financial institution or banks.
How Can Co-Application Help?

As we pointed out earlier, co-application can help you in case of a low credit score or low income but we can not say yes it will help you but we can say that it may help in personal loans.

In case of co-application and income of both the applicants is taken into consideration for one loan or more loan and thereby making you eligible for a bigger loan that could meet your requirements and Or make you eligible for a loan with good credit which you might find it difficult to get approved for with single income it must.

Like if you have a credit score

If you have a low credit score and then a co-applicant with a good credit score may help you sail through the approval for your loan as combined credit scores may help you at a particular time or in the future.

Other than that the burden of repayment of the loan rests with both the applicants it will charge Personal Loan Interest Rate and other so effectively you can split the burden of repayment so that one person is not taxed with the entire EMI amount it will help you.
Challenges Involved In Getting A Co-Applicant For a Personal Loan?

A co-applicant definitely reduces your burden of loan repayment and increases your chances of obtaining a loan if you have a credit score with the co-applicant. Other than that there are certain challenges involved in getting a co-applicant for your personal loan it is everywhere not only in co-application personal loan.

Conclusion: Irrespective of the nature of the loan you go for and whether as an individual applicant or in a joint mode it will be different but you must have a credit score make sure you make prompt repayments so that you can maintain a good credit score for all your future credit needs it will much helpful.

Write a Comment