Personal Use Loan

What Is The Eligibility For A Joint Personal Loan?

By Tata Capital
10 December 2025
8 mins read
3036

Introduction

Every person hopes for an easy lifestyle and wants to give the best of everything to their family members. However, if the needs aren’t met with the current financial situation, taking a personal loan and gradually repaying it off seems like a viable option to cover specific financial expenses.

These days it is very easy to apply for and get a personal loan since giving collateral against the loan is unnecessary. Minimal documentation, like basic personal details and income proof, is enough to get a loan sanctioned.

Sometimes a loan may get rejected if one cannot fulfil the eligibility criteria. This may happen because of a low credit score or when the monthly income barely covers the EMI arising from the loan. Loan rejection, typically, also happens when the loan amount is high. The best option in such a scenario would be to apply for a joint personal loan, where the primary borrower and a co-applicant share the repayment burden.

Who is a co-applicant?

A co-applicant is a person with whom one jointly applies for a loan. This person shares the loan repayment responsibility with the primary borrower. Such loans are also called joint loans. While applying for a joint personal loan, the credit score, the income of the co-applicant, and the joint personal loan eligibility of both applicants are factored in. In the case of a personal loan, the spouse, parents, or siblings can be the co-applicants.

Key eligibility criteria for joint personal loans

Applicants must be Indian citizens working in a public or private limited company or an MNC.
The age of the applicants should be between 21 and 60 years.
Applicants should have a credit score of more than 750.
Applicants should be graduates with a minimum of 1 year of work experience.
Should have a minimum income of Rs. 25,000.

Combined income requirements for joint personal loans:

The minimum combined income for a joint loan application varies by bank or financial institution. For example, when applying for a joint personal loan with Tata Capital, applicants must have a minimum monthly income of Rs. 25,000. This means that, when you combine the income of both applicants, it should add up to at least a minimum of Rs. 50,000 per month

Minimum credit score for joint personal loan

The minimum credit score needed when you apply for a joint personal loan will also vary depending on your lending bank or financial institution. At Tata Capital, for example, to apply for a joint personal loan, both applicants must have a credit score of 750 or higher. Lending institutions typically set a minimum credit score to ensure creditworthiness.

Also, read – Joint Loan Account: Here Is What You Need to Know

Joint personal loan application process

Borrowers can easily apply for joint personal loan online by following a simple process. Both applicants must fill out the joint loan application form with their respective details.

– Both the applicants need to submit a few documents, including:

Aadhaar cards
PAN cards
Salary slip or income proof of last three months
Bank statements for the last six months

After submitting these documents, the lender will verify them and check both applicants’ credit scores. After verification, the loan gets approved, and the amount is credited in the borrower’s bank account.

Important considerations before taking a joint personal loan

Before you apply for a joint personal loan, there are some essential factors to consider. These include the following:

The co-applicant’s credit score can increase or decrease the primary lender’s credit score; this is an important factor to consider for joint personal loan eligibility.
Additional documents will be required as both applicants need to submit their respective documents. Getting all the documents ready can be time-consuming. The process may get delayed since both applicants’ joint loan applications must be verified.
The co-applicant has to share the burden of loan repayment. If, by chance, the co-applicant defaults, it will affect the primary applicant’s credit score. In some cases, co-applicants might not be willing to share the burden of repaying the loan. In such a case, the entire loan amount is given to the primary loan borrower, who will repay the entire amount. This will increase the EMI since the repayment will not be shared.
Not all banks/financial institutions offer joint personal loans. However, it may be considered if the applicant’s relationship with the bank is good.

Using a joint personal loan eligibility calculator

The most important thing to know when applying for a joint personal loan is the EMI (Equated Monthly Instalment) amount. This is the amount the borrower will be paying every month. A personal loan EMI calculator can help calculate this amount. The joint personal loan eligibility calculator also calculates the total interest payable and the total amount payable if the joint personal loan is availed.

– How is a joint personal loan EMI calculated?

It is calculated using the below formula –

[P x R x (1+R) ^N] / [(1+R) ^N-1]

Here, P stands for the principal or loan amount. It is the total loan amount that has been availed.

R is the rate of interest. It is the rate at which interest will be charged on the principal amount and is calculated in percentage.

N is the tenure or the number of years for which the loan is availed. It represents the amount of time the borrower will need to repay the loan amount along with interest.

The joint personal loan can also be pre-closed. Some additional pre-closure charges might apply. While taking a joint personal loan, one must remember not to default on repayment to maintain a good credit score.

Also, read – Difference Between A Co-Borrower, Co-Owner, Co-Signer And Co-Applicant Of A Home Loan

– Benefits of applying for a joint personal loan

Joint personal loans are an excellent option for managing financial challenges. They allow borrowers to combine resources and access opportunities that may not be available individually.

Some of the main benefits of joint personal loans include:

1. Higher loan amount in joint applications: One of the biggest advantages of co-applicant loans is that applicants can pool their funds to qualify for larger loans. For example, parents and a child can apply together to fund an overseas degree, making it easier to cover tuition and living expenses.

2. Lower interest rates: If at least one applicant has a strong credit score, lenders may offer a lower interest rate, reducing the overall cost of the loan.

3. Faster approvals: Lenders often consider joint loans less risky, which can result in quicker processing and faster access to funds.

– Who can be a co-applicant for a joint personal loan in India?

While meeting the basic eligibility criteria is important, several other factors can affect your chances of approval for a joint personal loan.

-So who can be a co-applicant for personal loans?

The relationship between co-applicants plays a key role. For joint personal loans, family members or married couples are generally viewed as lower risk than friends or distant relatives. The loan amount and repayment tenure also matter. For example, larger loan amounts or more extended repayment periods could require stronger credit profiles and higher combined incomes.

Both applicants’ income and credit history are crucial. Choosing a co-applicant with a stable income and a good credit score (700+), such as a spouse, parent, sibling, or trusted friend, can improve your approval chances.

How to improve your joint personal loan eligibility

If you do not yet meet the eligibility criteria for a joint personal loan, there are some steps you could take to improve your chances.

– Here is how to improve joint personal loan eligibility:

1. Improve your credit score: Pay any bills in a timely manner, reduce your credit utilization ratio, and carefully check your credit report for errors. Correct any discrepancies as soon as possible for joint loans.

2. Increase your income: Boosting your income can strengthen your eligibility. Consider part-time work or reducing unnecessary expenses to improve your financial profile.

3. Choose the right lender: Eligibility criteria for joint personal loans vary across lenders. Research thoroughly to find a bank or financial institution whose requirements align with your current profile.

By following these steps, you can increase your joint loan approval chances!

Conclusion

The chances of getting a loan approved are higher with joint personal loans. Also, the loan repayment burden is shared with the co-applicant. Tata Capital provides several options to get personal loans that suit the needs of the applicants, who can easily apply for joint personal loans online. Use the Tata Capital joint personal loan eligibility calculator to assess the EMI and plan your finances accordingly.

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FAQs

What are the conditions for a joint loan?

To open a joint loan, both applicants must meet the lender's eligibility criteria. These include a stable income, valid ID proof, and a good credit score.

What are the disadvantages of joint loans?

The primary disadvantage of a joint loan is that if one person misses payments, both credit scores are affected. You also share full responsibility for repaying the entire loan amount.

What are the dangers of a joint account?

A joint account can lead to problems if one person overspends or fails to contribute. Missed payments or disputes can affect your financial standing and credit history.

What is the primary benefit of applying for a joint personal loan?

The primary benefits of applying for a joint personal loan include lower interest rates, faster approval times, a higher chance of getting the loan approved, and shared repayment responsibility. Combining incomes and credit histories can also provide access to larger loan amounts and added financial flexibility.

Who can be a co-applicant for a joint personal loan in India?

Eligibility to be a coapplicant on a joint personal loan in India may vary by lender. For example, at Tata Capital, applicants must be Indian citizens aged 21 to 60, have a credit score above 750, be a graduate with at least 1 year of work experience, and have a minimum income of ₹25,000.

What are the key eligibility criteria for a joint personal loan?

Eligibility for a joint personal loan varies by lender. At Tata Capital, for example, applicants must be Indian citizens, have a minimum income of Rs. 25,000 per month, be between the ages of 21 and 60, and work for a public or private company.

How does a joint personal loan affect the credit scores of both applicants?

A joint personal loan usually impacts both applicants’ credit scores similarly. Making timely, full payments can help improve both scores, while missed or late payments can lower them. Essentially, the repayment behavior of either borrower affects both credit profiles.

What happens if one co-applicant defaults on a joint personal loan?

If one co-applicant defaults on a joint personal loan, the other co-applicant is generally legally responsible for repaying the full amount. Any missed payments can negatively impact the credit scores and histories of both applicants, as lenders hold both equally accountable.

Can I apply for a joint personal loan online with Tata Capital?

Yes, borrowers can apply for a joint personal loan online with Tata Capital. The process is simple: fill out the online form with the right details and submit the necessary documents, such as Aadhaar and PAN cards, salary slips, and other supporting documents.

Why would a lender prefer a joint personal loan application?

Joint personal loans combine multiple incomes and credit scores, making applicants appear more reliable to lenders. As a result, lenders are more likely to approve such loans, often offering faster approvals and lower interest rates, since the risk of repayment default is reduced.

Are there any tax benefits for a joint personal loan?

Personal loans are considered liabilities, not additional income, and therefore are not subject to income tax. However, because they are not treated as income, borrowers cannot claim any specific tax benefits on them either.

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