How personal loan with co-applicant affect your eligibility

Qualifying for a personal loan depends on factors like your income, credit score, and current liabilities. Sometimes, as a primary borrower, you may not meet the eligibility criteria due to a low credit score or insufficient income. Check your pre-approved loan offer with phone number and OTP → Apply online in 5 minutes → Receive funds within a day*. This way, you can quickly know your options and plan accordingly. 

In such cases, adding a co-borrower to your loan application can improve your chances. Get funds in 24 hours by understanding how joint applications work and who qualifies as a co-applicant.

A co-applicant is someone who applies for a loan alongside another person. Both share the responsibility of repaying the loan. Lenders check the credit histories and financial situations of both applicants, which can increase the likelihood of approval. Essentially, the stronger the joint profile, the better your chances.

Not everyone can become a co-borrower. Usually, lenders allow your spouse or parents to join as co-borrowers. Some may allow siblings, but it is important to verify this with your bank or financial institution. By adding a co-borrower, the lender considers combined income. If your salary alone is insufficient, your co-borrower's income can bridge the gap. A higher combined income can also make you eligible for a larger loan at a competitive interest rate.

While a co-borrower with a good income can boost your eligibility, there are key points to keep in mind:

• Credit score matters: A co-applicant with a high credit score strengthens your application, but a poor score can reduce your chances.
• Shared responsibility: Both applicants are equally responsible for EMIs. If your co-borrower misses a payment, you must cover it, or both credit scores may be affected.
• Documentation: Ensure all documents, including income proof and ID, are accurate for both applicants to avoid delays.

Having a co-borrower not only improves your personal loan eligibility but may also help you secure a higher loan amount at better interest rates. Many lenders, including Bajaj Finance, provide pre-approved offers on personal loans, business loans, and housing loans. Know your pre-approved offer by sharing a few basic details. 

Only 2 steps to check your eligibility, and you could get funds in 24 hours.