Co-applicant meaning

A co-applicant is a person who applies for a Joint Home Loan with another borrower. A co-applicant differs from a co-signer or guarantor in terms of their rights associated with the loan.

Who can be a co-applicant for a home loan?

A co-owner must be a co-applicant for the Home Loan. Only a few mentioned relations can be co-applicants: A son and an unmarried daughter can apply for a Joint Home Loan with their parents. A husband and his wife can apply together. Brothers can take a Home Loan together, but a brother-sister or sister-sister combination is not allowed. A Joint Home Loan with a friend cannot be taken. A minor cannot be a co-applicant.

In the case of Joint Home Loans, the co-applicant’s income may be used to supplement the income of the borrower and increase their Home Loan eligibility. To pick the right loan amount and tenor, use the Home Loan EMI Calculator.

Co-applicant example

A co-applicant in a home loan is someone who applies for the loan alongside the primary applicant. For example, consider Mr. and Mrs. Smith, a married couple. To increase their loan eligibility and share the financial responsibility, they apply for the loan together. They both co-own the property, split the repayment burden, and enjoy potential tax benefits. This arrangement divides financial commitment and offers a safety net for both parties.

Co-Applicants vs. Co-Signers

Co-applicants and co-signers play distinct roles in a home loan application, each with its own level of financial responsibility and implications.


  • Share loan responsibility and ownership.
  • Both contribute to eligibility and credit assessment.
  • Can claim tax benefits and share risks.


  • Provide loan repayment guarantee if primary borrower defaults.
  • Not co-owners, their credit assessment may not always be required.
  • Generally, do not receive tax benefits but carry higher repayment risk.

It is advised to choose carefully based on financial needs and understand implications before involving co-applicants or co-signers in a home loan application.

Frequently asked questions

What is the difference between a first applicant and a co-applicant?

The terms ‘first applicant’ and ‘co-applicant’ refer to individuals involved in a home loan application, each with distinct roles and responsibilities. Understanding the difference between them is crucial when applying for a home loan.

First applicant:

  • Main borrower with primary responsibility for the loan.
  • Credit assessment focuses mainly on their financial profile.
  • Owns the property and communicates with the lender.


  • Applies jointly, sharing loan responsibility and ownership.
  • Both applicants' credit histories and incomes are assessed.
  • Shares ownership rights and contacts the lender as needed.

Both play distinct roles, affecting loan eligibility, ownership, and financial obligations.

Can a co-applicant be removed?

Yes, it is often possible to remove a co-applicant from a home loan, but the process and requirements can vary depending on the lender and the specific terms of the loan agreement.