Overview

Income level, credit score, current liabilities are important factors that are considered to approve a personal loan. If you are falling short due to some reason, you can include a co-owner in your application and take a joint loan. Taking a joint loan is a convenient way to boost your chances of getting a higher loan.

It’s critical to remember that when you take out a joint loan, you’re jointly responsible for repaying the amount. So, if one person can’t or won’t pay it back for whatever reason, the other will be accountable for the entire amount.

Here’s everything you need to know about getting a joint loan.

What Is A Joint Loan?

A joint loan is one that is applied for, used, and repaid by more than one person. In most cases, the agreement is for two people. The partner could be your spouse or your parents or in some cases, your sibling.

When you take out a joint loan, you’ll be told how long it’ll last, how much you’ll have to repay over time, and what the interest rate will be.

You might be able to secure a larger loan at a lower interest rate if you borrow along with someone else. Since they aren’t depending entirely on one borrower to repay the amount, lenders frequently view joint applications as less risky.

What Are The Requirements For A Joint Loan?

Your credit history will be scrutinised by your new lender if you take on new debt. This is to determine your likelihood of repaying the debt. The stronger your credit history, the more likely you are to get approved for the loan. The largest loans, with the lowest interest rates, are saved for those with the best credit scores, as they are thought to be the least likely to fail on the loan.

When applying for a combined loan, both partners must give out their information, and the lender will consider both of their credit scores. Because they are jointly liable for repayment, a lender will want to determine if each person is capable of doing so. As a result, it’s critical to have an open and honest conversation with the person with whom you’re considering a joint loan before applying.

Who Can Share A Joint Loan?

Taking out a joint loan is something that should be done with caution. This is due to the fact that both people who take out the loan are jointly accountable for repaying it.

As a result, before you sign on the dotted line, you should carefully consider the individual with whom you are borrowing. The questions below are an excellent place to start:

  • Have you known them for a long time?
  • How trustworthy are they?
  • What do you know about their financial situation?
  • What would happen if they lost their employment or were unable to work? Do they have any money or other assets that they could use?
  • Do you have faith in them?
  • You might be able to get a joint loan easily with the following people-:
  • Your parents
  • Your spouse
  • Your siblings

What Is The Eligibility Criteria For A Joint Loan?

Your credit history will be scrutinised by your new lender if you take on new debt. This is to determine your likelihood of repaying the debt. The stronger your credit history, the more likely you are to get approved for the loan. The largest loans, with the lowest interest rates, are saved for those with the best credit scores, as they are thought to be the least likely to fail on the loan.

When applying for a combined loan, both partners must give out their information, and the lender will consider both of their credit scores. Because they are jointly liable for repayment, a lender will want to determine if each person is capable of doing so. As a result, it’s critical to have an open and honest conversation with the person with whom you’re considering a joint loan before applying.

Benefits Of Having A Joint Loan

Below listed are some benefits when you opt for a Joint PersonalLoan. Take a look to know what benefits you are getting.

  • You Might Be Eligible For A Larger Loan:

You will be eligible for a larger loan as a couple than you would be as an individual. So, if your individual loan limit is Rs 6 lakh, when combined with your spouse’s limit of, say, Rs  4  lakh, your combined loan limit may be Rs 10  lakh.

  • Better Chance of Getting Your Loan Approved:

You have a better chance of getting your personal loan approved when you apply for a joint loan. If your partner has a higher credit score or income that improves your chances of getting a loan.

  • Paying the EMI will become easier

If you have a joint account,paying the EMI will become more convenient. The stress of funding the account can be jointly shared.

In case you have a shortfall in income or credit score, you can always choose to add a co- borrower and convert it into a joint personal loan application. The process of getting a personal loan at LoanTap is easy. All you need to do is fill the online application form and upload the following documents for both partners –

  • PAN Card
  • Aadhaar Card
  • Salary slips for the last three months
  • Bank statements of the salary account for the last six months

The loan application will be evaluated by the LoanTap team. If the documents are in order and the loan parameters are met, the loan will be approved and credited to your account. The entire process will not take more than 24-36 hours.

LoanTap offers personal loans from Rs 50,000 – Rs 10,00,000 for tenures ranging from 6 months to 60 months with annual interest rates starting from 18% per annum. There are a slew of flexible repayment options available. You have the flexibility to foreclose the loan after servicing it for six months without any prepayment penalty.

So, don’t get stressed if your individual loan application is at risk of getting rejected. It can be fixed by applying as a joint loan with your partner. LoanTap is always available to take care of your funding needs. Please visit https://loantap.in/  and we assure you that we will help you get the best personal loan deal.

Related article – Asked To Be A Loan Guarantor? Understand The Risks Involved

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Satyam Kumar is banking industry veteran with enriched experience of more than 20 years. Apart from founding LoanTap and FinTech Association of Consumer Empowerment, he is an avid traveler and holds keen interest in Blogging. He has amassed profound knowledge in FinTech trends, banking, consumer trends, food and mythology which he loves sharing with others.
Satyam kumarSatyam KumarCEO & Co-Founder, LoanTap asset 8 asset 9
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