Factors to consider before getting a joint personal loan

Know the factors to consider before opting for a joint loan, and make an informed borrowing decision.
Factors to consider before getting a joint personal loan
5 min read
19 July 2023

When it comes to covering a range of expenses, a personal loan often proves to be the most suitable option. However, it is worth noting that you also have the option to share both the ownership and responsibility of the loan with another person.

A joint personal loan with a co-applicant could prove to be the most suitable choice if you have a reliable partner who can assist you in repaying a loan. A joint loan can be used for a variety of needs, much like a regular personal loan.

Understanding the joint personal loan eligibility

Listed below are the eligibility criteria to apply for a joint personal loan:

  • Nationality: Indian
  • Age: 21 years to 80 years*
  • Employed with: Public, private, or MNC
  • CIBIL Score: 685 or higher
  • Monthly salary: Starting Rs. 25,001, based on the city you live in

By following the lender’s application process, borrowers can apply for joint personal loans with ease. The joint loan application must be filled out by both applicants with their respective information.

Here are five factors to keep in mind when opting for a joint personal loan

1. Credit score

The fate of your loan application often depends on your credit score. It is easy to assume that a poor credit rating automatically leads to a rejected loan application. Although having a low credit score does reduce your chances, the credit score of your partner can potentially be the saviour in a joint personal loan.

Therefore, there is no need to lose hope, as there are loans specifically designed for individuals with less-than-ideal credit scores. A joint loan opens more funding possibilities by having a co-applicant who possesses a good credit score to share the loan with you. This will significantly increase the chances of your loan approval and secure the funds you require.

2. Debt-to-income ratio

Before pursuing a joint personal loan, it is essential to carefully assess your partner's gross monthly income and expenses. It is crucial to ensure that there is an ample amount of disposable income available to repay a loan. It is not advisable to have a loan partner who is already facing financial constraints.

Lenders perceive a high debt-to-income ratio as an imbalance between debt and income, indicating a reduced capacity to repay borrowed funds.

3. Tenure of your loan

Consider the length of your joint personal loan carefully. Lower monthly payments are often associated with longer loan tenures, making it easier to manage your cash flow. A longer loan tenure can lead to a higher total interest over time. Conversely, shorter loan tenures can result in larger monthly payments over time, but they might also result in a reduction in the amount of interest you pay. Assess your and your co-applicant's financial position, budget, and future goals to establish the best loan duration for your needs.

4. Co-applicant’s payment reliability

It is essential to assess the reliability of your partner in making timely payments when considering a joint personal loan. The shared responsibility of a joint loan necessitates evaluating whether your co-borrower can be trusted to fulfil the financial obligations. It is important to avoid a situation where your loan partner may leave you burdened with additional debt.

In addition to reviewing credit scores and debt history, it is important to consider the overall financial behaviour of your co-applicant. Look beyond the numbers and assess their attitude towards finances, their financial responsibility, and their communication regarding shared financial duties.

5. Loan amount and purpose of the loan

Determining the loan amount and purpose is a fundamental question when considering a joint personal loan. It is essential to thoroughly evaluate your financial requirements in order to prevent unneeded debt. Opting for a joint personal loan with a co-applicant allows for shared loan ownership, encouraging accountability and responsible financial choices regarding the use of borrowed funds.

You not only improve your loan eligibility by splitting the financial responsibility and repayment burden between two individuals, but you also develop a method for efficiently managing your financial obligations.

The responsibility that comes with loans is substantial, but it is a duty that you can share with a trustworthy co-applicant.

If you are looking for funds to manage a variety of expenses, you can choose our personal loan of up to Rs. 40 lakh. Once your loan is approved, you can expect the funds to be credited in your bank account within 24 hours*, ensuring quick access to the loan amount.

Click here to know more about our personal loans.

*Terms and conditions apply


While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply