How a co-borrower can increase the chance of getting your personal loan approved

Thus, if you as a primary borrower may lose out due to your income, your co-borrower’s income fills the void.

Also, adding a co-borrower with a large income might make you eligible for a bigger loan amount at a competitive interest rate.

Essential things to watch out for

While a co-borrower with a good income can certainly boost your personal loan eligibility, there are certain essential things you need to watch out for. Note that it’s not only the income of the co-borrowerthat’s taken into account by the lender, but also the credit score.

While a good score of the co-applicant can certainly give your eligibility the much-needed boost, a poor score can dent your chances of procuring the loan. Hence, it’s important for you to find out if your co-borrower has a good credit score or not.

Also, when applied jointly, the onus of paying the EMIs rests on both of you. In case your co-borrower fails to pay his/her part of the EMI, you must be ready to shoulder your co-applicant’s share of the EMI. A default will affect both your scores.

Adding a co-borrower – a prudent way to enhance loan eligibility

Since co-borrower for a personal loan includes your family member(s), it’s a prudent way to boost loan eligibility. It reduces chances of a conflict to a great extent in case your co-borrower fails to shoulder his/her part of the EMIs to be paid. Not only does a co-borrower enhance your personal loan eligibility, but it also gives you an opportunity to avail a larger amount at better rates.

With pre-approved offers from Bajaj Finserv on a gamut of loans including home loan, business loan and personal loan, availing finance is an easy and hassle-free affair. Know your pre-approved offer by sharing a few basic details.