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 on 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.