What is the meaning of co-applicant?

A co-applicant, as the name itself suggests, will act as an additional application/applicant for the loan that you are borrowing. Having a co-applicant will increase the chance of approving the loan, and the amount that you want to borrow. However, best personal loans, do check out the best EMI options open in Buddy Loan as this aggregator disburses instant personal loans at lower interest rates and good loan tenure. 

 A co-applicant can become a co-borrower once the loan is approved. Which means the loan amount can be shared among both of you. It must be a family member or an immediate family member.

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Now that you have a fair idea of the co-applicant let's see how a co-applicant is different from a co-signer.

The difference between co-applicant & co-singer: 

 Co-signer is a person who acts as a guarantor in case of the primary applicant cannot repay the loan, that is to make sure there is an additional way of getting the money back.

 Whereas a co-applicant will act as a secondary applicant who will have the rights to get hands-on the loan amount that you are borrowing.

There can be a co-applicant in any type of loans provided by Buddy Loan, like Home, Mortgage, Vehicle, Personal loans etc.

When you are applying with a co-applicant, one must fill the application form along with the primary applicant. 

Then the lender will do a background check for both the applicants to understand their previous Credit history, CIBIL Score, Income, etc., to be sure of repayment of the loan.

The lender's limit: 

 The lenders allow up to 6 co-applicants for a home loan/mortgage. Below is the combination of co-applicants 

 

1. Husband and wife – These are the most preferred combination. In this case, both the applicants will be the owner of the property and will be equally responsible to repay it.
2. Father and Son – The son can be a co-owner only if he is the only child. If he has any siblings, then he can be only a co-applicant, this is to avoid al the family disputes in the future.
3. Father/Mother and unmarried Daughter – In this case the unmarried daughter can be the owner, and Mother/father can only be the co-applicants. Their income will not be considered together
4. Brothers – In this case brothers in the same family can take a loan jointly. However, in this case, they must live together on the property that they purchase. 

 

Below are the combinations that are not allowed

1. Father/Mother and married daughter
2. Brother and sister
3. Sister and sister

 

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