Yes, you can apply for a personal finance with a co-applicant. If the joint applicant has a familial relationship with the borrower, they can be eligible for the loan. For example, your co-applicant can be your spouse, parents, or siblings. Plus, the co-applicant must meet the eligibility criteria of the loan provider. They must be earning and should have a credit score of 750 or above.
Here are some benefits of applying jointly for a loan:
#1. Increases approval chances of the loan: When you apply for a loan with a co-applicant, the lender considers both applicants' income to determine eligibility. If your income is low, having a co-applicant with a higher income can help increase your chances of getting a quicker approval for the loan.
#2. Eligible for more favourable terms: You can be eligible for higher loan amounts and competitive interest rates if you have a co-applicant with a high credit score and income. This will give you more financial flexibility.
#3. Enjoy shared responsibility: With a joint application, the responsibility of repaying the loan is shared between both applicants. That's why each applicant enjoys the benefit of lower monthly EMIs and shorter repayment tenure. Plus, it significantly reduces your interest obligations, allowing you to pay off the debt more quickly.