Personal loans help us get out of financial problems. When someone needs a lumpsum amount to meet an urgent financial obligation, they can take an insta personal loan from a reputed lender. Since a personal loan is not returned at once, the borrower does not feel pressured. The borrower can take their time and repay the personal loan in easy instalments over the agreed tenure. However, one should fulfil the personal loan eligibility conditions. The lender might reject the personal loan application if the conditions aren’t fulfill. But do you know that co-applying for a loan can help fulfil the eligibility criteria? Read on to understand how a co-applicant can influence your loan eligibility.
What is applying for a personal loan with a co-applicant?
Anyone can solely apply for a personal loan with a lender. Sometimes, two people can also jointly apply for a personal loan. Yes, a borrower can apply for a personal loan with a parent, spouse, sibling, or any other family member. In many cases, an insta personal loan can be approved because of a co-applicant. A co-applicant can make or break the personal loan application. When two applicants apply for a loan together, their credit scores and incomes are considered. If one of the applicants has a lower income, the other might make up for it.
Understanding the eligibility for a personal loan in India
Before knowing how a co-applicant impacts the loan application, one should understand the personal loan eligibility conditions. Every lender has some requirements for borrowers to apply for loans. If the borrowers ignore the requirements, their loan application might get reject. So, it is crucial to note that the eligibility conditions apply to the applicant and the co-applicant. Some basic rules to get a personal loan in India are as follows:
- The age of the loan applicant should be between 21 and 60 years.
- The loan applicant/co-applicant should be self-employed or salaried.
- The applicant and the co-applicant should have a good credit score.
- The loan applicant and the co-applicant should be citizens of India.
There might be some unique conditions for personal loans. For example, the lender might ask for a minimum monthly income of INR 25,000 before offering a personal loan. So, ensure that you meet personal loan eligibility criteria before submitting your application.
How does a co-applicant impact personal loan eligibility?
Your co-applicant can impact personal loan eligibility in the following ways:
- A co-applicant can enhance or degrade the creditworthiness of the applicant. For example, creditworthiness will improve if the co-applicant has a better credit score. On the other hand, creditworthiness can decrease when the co-applicant has a poor CIBIL score.
- Both the applicant and co-applicant are responsible for paying the loan EMIs. So, if the co-applicant fails to meet EMIs, it will also affect your credit score.
- If the co-applicant has a stable occupation, the chances of loan approval increase. On the other hand, the chances of loan approval can decrease when the co-applicant has many pending debts.
- The credit history of the co-applicant can impact personal loan eligibility. If the co-applicant has missed many EMIs in the past, the joint loan application might get reject.
- Some lenders offer special benefits to women applying for personal loans. For the same rationale, many individuals apply for a loan with their mother, sister, or wife as a co-applicant. In addition, it allows borrowers to get a lower interest rate on personal loans.
If you and the co-applicant have better credit scores, you can get an insta personal loan online. It means one does not have to visit the lender’s office or meet with an agent repeatedly. For quick approval, apply for a personal loan with your co-applicant on the website of Fullerton India. If the loan is approve, it will be disburse to the specified bank account quickly. So, co-apply for a personal loan now!