What Is a Co-Application for a Loan – Who is a Co-Applicant?

Published on: 23 May 2023

What Is a Co-Application for a Loan – Who is a Co-Applicant?

Loans are an efficient way to secure funding without depleting your savings or liquidating your investments. While many lenders have an easy application process, especially for personal loans, the eligibility criteria may make it difficult to get the financing you need.

In such cases, you can apply for personal loans with a co-applicant. However, before taking this step, understand the co-applicant meaning and how co-application impacts you and your finances. 

Read on to learn more about co-application, its benefits, drawbacks and more.

What is co-application for a loan?

A co-applicant is one who borrows a loan jointly with you. Co-application is also known as a joint application. When you co-apply for a loan, you and the co-applicant share equal repayment responsibility. 

Availing personal loans with a co-applicant is often a preferred option for those who require a higher amount of funding but are not eligible for it. Since the lender considers the credit profiles and creditworthiness of all who apply, co-application can improve your chances of getting a larger loan amount at an affordable cost.

You can have more than one co-applicant. However, all the applicants have to meet the eligibility requirements set by the lender. Generally, lenders only allow family members, i.e., parents, siblings and spouses to apply jointly for credit. 

Benefits and drawbacks of applying with a co-applicant


  • Increased chances of approval
  • Access to a higher loan amount at an affordable cost
  • Reduced repayment burden since all applicants shoulder responsibility 
  • Tax benefits for all applicants, depending on the type of loan


  • Impact on credit score and thereby on the creditworthiness of all applicants 
  • Added repayment stress if one borrower fails to repay
  • Affects the loan amount and ownership of assets (in some cases)

How to decide if you need a co-applicant?

Since applying for a loan jointly with someone else can affect your creditworthiness, it is vital that you make the right decision.
Here are some points to consider before applying for personal loans with a co-applicant:

  • If you are eligible for the loan amount and its repayment, avoid co-application
  • If the co-applicants’ credit history is not up to the mark, avoid co-applying
  • Ensure that your co-applicant is trustworthy and meets the lender’s requirements

Now that the co-applicant meaning is clear to you and you understand the pros and cons of availing of personal loans with a co-applicant, be sure to take informed steps before applying for a loan.

If your credit score or difficult eligibility terms are keeping you from applying for a loan, consider Fibe. At Fibe, you can get instant personal loan up to Rs.5 Lakhs by meeting a few simple eligibility criteria. Even if you are new to credit, you can still opt for the service with us. Just download the Fibe instant loan app or log in to our official website to apply digitally and get quick access to funds.

FAQs on co-application

What does a co-applicant need to apply for a loan?

For personal loans, a co-applicant must have a stable income source and a good credit profile. The person you choose to apply jointly with also needs to meet all the qualifying terms set by a lender. 

Who is eligible to be a co-applicant?

Generally, lenders allow family members, i.e., spouses, siblings, or parents to be the co-applicant. The eligibility is also subject to the criteria set by the lender.

Is a co-applicant also an owner?

A co-applicant does not necessarily need to be an owner or co-owner. However, a co-owner can be a co-applicant.

Who can be a co-applicant on a personal loan?

Generally, lenders allow you to apply for a personal loan with a co-applicant only if the co-applicant is a family member. This includes your parents, siblings, or spouse.

What is the difference between co-owner, co-borrower and co-applicant?

A co-owner is a person who has a legal right to the asset. A co-borrower is one who has equal responsibility in repaying the loan, especially if the primary applicant fails to repay the loan. However, a co-borrower does not have access to the loan amount. A co-applicant is the one who gets the loan amount and is responsible for its repayment.

Category : Finance

Share us on:

Need cash? Get up to ₹5 lacs instantly