It is very important to understand the meaning of co-applicant. A co-applicant is a person who applies for a loan along with the primary borrower. They share the responsibility of repaying the loan amount and are equally liable in case of default.
Having a co-applicant for a Personal Loan can increase your chances of approval as it helps mitigate the risk of lending to a single borrower. The co-applicant must have a good credit score and income to support the loan application. The co-applicant can be a spouse, parent, sibling, or close friend. Additionally, once the loan is sanctioned, you can easily check your personal loan statement online to stay updated on your outstanding balance, repayment schedule, and any accrued interest.
Also Read: How Can I Get A Loan For Personal Use
Before applying for a Personal Loan with a co-applicant, there are several factors that you must consider, including:
The primary borrower and the co-applicant must have a good credit score to be eligible for a Personal Loan. A good credit score indicates a higher level of creditworthiness and helps lenders assess the risk of lending money.
The income of the primary borrower and the co-applicant determine the sanctioned loan amount and EMI amount. It is important to have a stable income source to ensure timely loan repayment. For example, if you are seeking a personal loan on 24000 salary, having a co-applicant with additional income can significantly improve your eligibility and loan terms.
The debt-to-income ratio is the percentage of your monthly income that goes towards paying debts. Maintaining a low debt-to-income ratio is important. The borrower ensures that the loan amount is affordable and timely repayable.
Having a clear purpose for taking a loan with a co-applicant is important. You should avoid taking a loan for unnecessary expenses and only borrow what is necessary.
Before taking a loan, it is essential to have a repayment plan in place. It would help if you discussed how to repay the loan, including the monthly instalments amount, loan duration, and other fees.
Having a co-applicant for a Personal Loan can offer several advantages, including:
A co-applicant can enhance the primary borrower's creditworthiness, making them eligible for a higher loan amount.
Lenders will likely offer lower interest rates to borrowers with a co-applicant as it reduces risk.
Co-applicants can improve the loan's repayment terms, making it more affordable.
Borrowers must meet the following eligibility criteria to qualify for a personal loan when applying for the same with a co-applicant:
The co-applicant should be 21 years of age.
The co-applicant must have a family relationship with the primary borrower. Co-applicant can be spouses, parents, or siblings.
The co-applicant's income should be sufficient to support the loan repayment and the primary borrower's income.
The lender also considers the co-applicant's credit score. A good credit score increases the chances of loan approval and may result in better loan terms and interest rates.
The co-applicant must submit all the necessary documents required by the lender, such as:
Follow the steps given below when applying for a Personal Loan with a co-applicant from Hero FinCorp:
Apply for a Personal Loan with a Co-borrower option from Hero FinCorp and get a hassle-free application and approval process. Our loans offer a variety of benefits, such as:
If you're wondering how to get 1 Lakh loan immediately, applying with a co-applicant through Hero FinCorp can help improve your chances of quick approval and better terms. Whether you're in need of a personal loan in Ahmedabad or elsewhere, our streamlined process ensures fast disbursal and customer satisfaction.
If you are considering a Personal Loan for low CIBIL, then a co-applicant is a good option to apply for a loan with. Taking a Personal Loan with a co-applicant can be a smart financial decision, provided you understand the risks and have a clear repayment plan.
By choosing the right co-applicant, meeting the eligibility criteria, and carefully considering the factors involved, you can secure a loan that meets your needs and helps you achieve your financial goals. Whether you’re wondering how much loan can I get on 15000 salary or seeking better loan terms, a co-applicant can be a key advantage.
A co-borrower, also known as a co-applicant, is an individual who applies for a personal loan alongside the primary borrower. Both applicants share equal responsibility for repaying the loan.
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.