Joint Personal Loan: Important Things to Consider Before Opting

Getting a joint personal loan is a great option to avail of a sizeable loan amount if you’re unable to meet the lender’s criteria independently. With the fintech advancements, personal loans are more accessible than ever, but availing them can be a hassle if you don’t meet the lender’s criteria. 

To overcome this, lenders allow you to apply with a co-applicant or co-borrower. This can be a spouse, parents or siblings with a good credit history and income. A joint loan is not only a viable solution to boost your eligibility but also helps you secure better loan terms. 

Read on to learn more about a joint personal loan and things to consider before applying for it. 

How Joint Personal Loan Works

A personal loan is an ideal option to meet all types of financial requirements, as it does not have an end-use restriction. However, not having an optimal credit score or a minimum monthly income can lead to rejection or loan offers with a high-interest rate. So, the quickest way to boost your eligibility is to apply with a co-applicant having a good credit score and higher income. 

To apply, both applicants submit the required documents to get a joint personal loan. They also share the burden of repayment, which means they have equal EMIs. They have equal ownership over the funds as well. 

Things You Should Consider  

Consider these factors when opting for a joint loan to ensure easy repayments for all the parties involved. 

• Eligibility Criteria 

Both co-applicants must meet the lender’s parameters to get loan approval. While the specific parameters may vary slightly, here are some common joint personal loan eligibility criteria you can refer to.  

Parameter	Requirements
Nationality	All Indians can apply
Age	Any individual between 21 years and 55 years of age can apply
Employment	All salaried employees with a stable job and working in MNC, public or private limited companies can apply
Minimum In-hand Income	You must have ₹15,000 in non-metro cities and ₹18,000 in metro cities to apply but it may vary depending on lenders

• Credit Score 

Most lenders consider credit scores under 750 less-than-ideal. In this case, you can get a joint personal loan with your family member if they have a higher credit score. This will boost your chances of approval and get a loan at a lower interest rate.

• Debt-to-Income Ratio 

Since you and the co-borrower are equally responsible for repaying the loan, both should have a debt-to-income ratio under 40%. Lenders check this to verify if you can afford the EMIs. If either of you have many ongoing loans, this will directly impact your borrowing capacity. 

• Income 

Lenders consider combined income in a joint loan, so choosing a borrowing partner earning a considerable sum every month is imperative. 

• EMI Amount 

When deciding on a suitable monthly instalment, both borrowers must choose an amount that fits their budget. If one of them fails to make the payment, both their credit scores can take a hit. So, you should decide on a comfortable amount beforehand. 

• Interest Rates 

When you opt to get a loan with a co-applicant, it gives lenders better repayment assurance. You can leverage this fact to negotiate for a lower interest rate, reducing the financial burden on both borrowers. 

Now that you know all the key points for a joint personal loan application, you can get started by choosing from various digital lenders. One such option is the Fibe Instant Cash Loan, which allows you to get a loan amount of up to ₹5 lakhs at competitive interest rates. 

With Fibe, you don’t have to worry about a low credit score or time-consuming application process. This is because of our alternate credit score system through which we can offer funds even to those who are new to credit.

Furthermore, we have a completely digital application with no physical paperwork or visits required. Another reason to opt for Fibe is its flexible tenure option, 2-minute disbursal, zero foreclosure charges and more. Download our Personal Loan App or apply on our website now. 

FAQs on Joint Personal Loan

Is it better to get a joint personal loan?

Getting a joint personal loan boosts your eligibility and increases your chances of approval. It also helps you opt for a large amount at a lower interest rate than applying for a loan independently. 

How does a joint loan work?

With a joint personal loan, you apply with a co-borrower who shares the ownership over the loan account. Lenders assess their eligibility and offer a loan based on combined income and repayment capacity.  What’s more, all the borrowers share the responsibility to repay the instalments.  

How many people can be on a joint loan?

There is no legal limit for the number of borrowers on a joint account personal loan, and it depends on the lender’s policy.